The Khyber Pakhtunkhwa government is considering substantial reductions in professional tax rates for non-practising doctors, with the proposed changes expected to be incorporated into the Finance Bill 2026, Excise, Taxation and Narcotics Control Minister Syed Fakhar Jehan said on Friday.
Meeting with Doctors' Delegation
The announcement came during a meeting with a delegation of doctors led by former provincial president of the Insaf Doctors' Forum, Dr Nabi Jan Afridi, who presented concerns of the medical community regarding the annual professional tax imposed on doctors not engaged in private practice.
Proposed Tax Reductions
According to the minister, the proposed revisions are intended to provide significant relief to government-employed doctors and other medical professionals who do not earn income through private practice. Under the proposed framework, the annual professional tax for Grade-17 medical officers would be reduced from approximately Rs40,000 to Rs18,000. The tax for Grade-18 consultants, currently ranging between Rs70,000 and Rs80,000, would be reduced to Rs21,000, while Grade-19 consultants would pay Rs24,000 annually.
Fakhar Jehan clarified that the existing tax structure for practising doctors would remain unchanged.
Government's Commitment to Reforms
Speaking on the occasion, the minister said the provincial government was pursuing reforms aimed at improving public services and addressing the concerns of professional communities, particularly those serving in key sectors such as healthcare. He said doctors played a vital role in delivering healthcare services and deserved policies that recognised their contribution.
Providing relief to non-practising doctors, he added, would help address longstanding concerns within the profession while boosting the morale of healthcare workers serving in the public sector.
Equitable Taxation System
The minister said the government remained committed to creating a more balanced and equitable taxation system and was reviewing measures to ease unnecessary financial burdens on various segments of society. He assured the delegation that their concerns would be given due consideration during the budget-making process and that every effort would be made to resolve genuine issues facing the medical community.
Members of the delegation welcomed the proposed tax relief and expressed appreciation for the government's willingness to address concerns raised by non-practising doctors.
Future Outlook
If approved by the provincial assembly as part of the Finance Bill 2026, the revised tax rates would mark one of the most significant reductions in professional taxation for government doctors in recent years.
