Peshawar: According to news reports, the Khyber Pakhtunkhwa (KP) Local Government has asked PKR 4.8 billion from the provincial government after Tehsil Municipal Administrations (TMAs) were recommended to waive property taxes in the new fiscal year.

Read More: FY 2020-21 – FBR exceeds revised tax collection expectations

According to the information provided, the KP government has urged TMAs not to collect the property tax in the fiscal year 2021-22, subject to the local government’s opinion.

According to reports, TMAs were provided PKR 4 billion as compensation for non-collection of property tax in fiscal year (FY 2020-21) based on data collected the previous fiscal year, but the department is now seeking a 20% increase in finances to offer the same relaxation in FY 2021-22.

Previously, because to the ongoing coronavirus pandemic, the KP government reduced property taxes until June 30, resulting in a decrease in revenue for TMAs.

Read More: Budget 2021-22: KMC approves tax-free budget of PKR 26 billion

The local council board stated that the KP government had committed a grant of PKR 4 billion to TMAs in exchange for a 2 percent reduction in property taxes; but, due to delays in cash transfers, the TMAs were unable to pay the wages of their staff.

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