Court Confirms KP’s Authority to Tax Construction Services

The Federal Constitutional Court has upheld the Khyber Pakhtunkhwa government’s authority to impose sales tax on construction services, dismissing challenges filed by contractors and service providers against the provincial law. The ruling relates to the Khyber Pakhtunkhwa Sales Tax on Services Act, 2022, which introduced a 2 percent sales tax on various construction-related services. These…

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