KP Cabinet approves Finance Bill 2026, sets povincial revenue target at Rs. 182.4 billion
Peshawar (APP): The Khyber Pakhtunkhwa government here Friday finalized the Finance Bill 2026 and budget proposals for the fiscal year 2026–27 with the aim of increasing provincial revenues and strengthening financial management.
A summary prepared by the Finance Department has been approved by the provincial cabinet.
According to official documents, Finance Minister Muhammad Sohail Afridi and Finance Secretary Captain (Retd.) Kamran Ahmad Afridi have signed the summary.
The Chief Minister of Khyber Pakhtunkhwa had earlier authorized the presentation of all proposals before the provincial cabinet.
The government has set a total provincial revenue target of Rs. 182.41 billion for fiscal year 2026–27, representing a 41.4% increase compared to the target of Rs. 129 billion for fiscal year 2025–26.
The previous year’s target consisted of Rs. 83.5 billion in tax revenue and Rs. 45.5 billion in non-tax revenue. During the first ten months of that fiscal year, the province collected Rs. 100.8 billion, achieving 78% of the overall target.
Under the Finance Bill 2026, amendments have been proposed to seven major laws and acts, including the Urban Immovable Property Tax Act, 1958, the Motor Vehicle Taxation Act, the Khyber Pakhtunkhwa Finance Act, 1990, KP Ordinance No. 23 of 2002, the Khyber Pakhtunkhwa Sales Tax on Services Act, 2022, the KP Infrastructure Development Cess Act, 2022 Khyber Pakhtunkhwa Public Finance Management Act, 2022.
The bill also proposes amendments to various departmental laws and regulations, including the West Pakistan Foodstuffs Control Act, 1958, Khyber Pakhtunkhwa Provincial Motor Vehicles Rules, 1969, Agricultural Pesticides Rules, 1973, Fertilizer Control Rules, 2003, KP Standard Weights and Measures Rules, 1976 and
Mines Registration Rules, 1996.
Amendments were also proposed of Examination Rules, 2022, Khyber Pakhtunkhwa Civil Servants Pension Rules, 2021, Finance Bill also includes a proposal to introduce E-Invoicing and Sales Tax Enforcement Rules 2026 under the Khyber Pakhtunkhwa Revenue Authority (KPRA). The objective is to make the tax system more transparent, efficient, and digitally integrated.
After completing its review, the cabinet approved the Finance Bill 2026. Law Minister Aftab Alam has subsequently presented the bill in the Provincial Assembly for final approval.
According to government officials, the Finance Bill 2026 is expected to help increase revenue collection, promote fiscal discipline, accelerate the digitalization of the tax system, and further strengthen the province’s financial autonomy.
