Governor Kundi directs committee to resolve withholding sales tax issue
PESHAWAR, September 4 , 2026:
Governor Khyber Pakhtunkhwa Faisal Karim Kundi on Friday directed the formation of a committee comprising officials of the Federal Board of Revenue (FBR) and Khyber Pakhtunkhwa Finance Department to resolve the issue of withholding sales tax deduction on purchases made by government departments.
He issued these directives while chairing a high-level meeting held at Governor House regarding the deduction of withholding sales tax on procurement of goods by government departments.
The meeting was attended by Adviser to Chief Minister on Finance Muzammil Aslam, Chief Secretary Khyber Pakhtunkhwa Shahab Ali Shah, officials of Finance Department, Khyber Pakhtunkhwa Revenue Authority (KPRA), Planning and Development Department, Local Government Department, FBR, Accountant General Khyber Pakhtunkhwa and other concerned officials.
The participants held a detailed discussion on the federal withholding sales tax applicable to purchases made by government departments. Legal and financial aspects of tax deductions, existing procedures and challenges faced by departments were also reviewed during the meeting.
Governor Kundi emphasized that matters related to withholding taxes should be dealt with in accordance with the Constitution and law.
He said the issue should be resolved in line with the practices and arrangements of other provinces, adding that the committee comprising FBR and Finance Department officials would work towards finding a viable solution to the matter.
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