Peshawar, June 18, 2025 — Responding directly to concerns raised by the legal community, the Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA), Fouzia Iqbal, clarified that the Finance Bill 2025 does not introduce any new tax on lawyers. Her statement came after the Khyber Pakhtunkhwa Bar Council issued a press release claiming a new tax had been imposed.
KPRA Introduced Tax in 2024
DG Fouzia Iqbal explained that KPRA had already introduced a Rs. 500 Sales Tax on Services per legal case under the Finance Act 2024, and that this tax has remained in effect since the last fiscal year. However, she acknowledged that KPRA has not yet launched any enforcement drive to collect the tax from lawyers.
She urged members of the legal fraternity to understand that this tax is not a recent development. “The perception of a new tax is entirely misplaced,” she emphasized, clarifying that the policy is a continuation of the previous year’s legislation.
Other Provinces Already Implementing the Tax
Fouzia Iqbal further pointed out that both Sindh and Punjab have already implemented similar Sales Tax on Services for lawyers, and at higher rates than Khyber Pakhtunkhwa. She highlighted this comparison to show that KPRA has taken a more balanced and moderate approach toward taxation.
She also mentioned that lawyers in other provinces have already adapted to the tax policy without facing major hurdles, expressing hope that Khyber Pakhtunkhwa’s lawyers would soon follow suit and comply with the law smoothly.
KPRA Plans Engagement Before Implementation
Looking forward, KPRA plans to engage with the legal community next month to discuss the tax’s implementation. The Authority aims to build consensus and ensure that lawyers experience minimal complications in meeting their tax obligations.
She also assured lawyers that they do not need to register with KPRA for tax collection purposes at this stage. KPRA will provide support and guidance to help them transition into the tax system comfortably and effectively.
By offering this clarification, KPRA aims to counter misinformation and ease concerns in the legal community. DG Fouzia Iqbal reaffirmed KPRA’s intent to integrate lawyers into the formal tax network without causing unnecessary burden, keeping in line with practices already established in other provinces.
In conclusion, she reiterated that no new tax on lawyers exists in the Finance Bill 2025, and that KPRA will continue working with the legal community to implement the existing policy smoothly.
