Professional Tax Deductions
The Khyber Pakhtunkhwa (KP) Excise and Taxation Department has officially instructed the Health Department to begin deducting professional tax from doctors’ salaries. This directive, issued through a formal letter, mandates hospitals across the province to ensure compliance with the taxation policy.
According to the letter, the tax deduction will be carried out as per the prescribed rates set by the provincial government. Additionally, hospitals have been directed to recover any outstanding tax dues from doctors who have not previously paid their professional tax liabilities.
This move aims to enforce tax regulations more strictly and ensure that medical professionals fulfill their tax obligations.
The directive is based on a 2021 ruling by the Peshawar High Court (PHC), which emphasized the need for all professionals, including doctors, to pay professional tax in accordance with provincial taxation laws.
The PHC ruling reinforced the government’s authority to impose and collect such taxes, making it obligatory for institutions to comply with the regulations.
Furthermore, the letter warns hospital administrations of potential penalties if they fail to implement the tax deductions as instructed. Non-compliance with the directive could result in legal consequences for hospitals, putting additional pressure on administrators to ensure timely deductions and tax collection.
This decision has sparked discussions among the medical community, with concerns being raised regarding the financial impact on doctors, particularly those working in public sector hospitals.
Some professionals argue that the additional tax burden could affect their earnings and morale, especially in light of existing challenges in the healthcare sector.
Despite the concerns, the KP government remains firm in its stance, stating that the professional tax is a legal obligation that must be fulfilled. The move aligns with broader efforts to streamline tax collection and improve financial discipline across various professional sectors in the province.
As the policy takes effect, hospitals are expected to adjust their payroll systems accordingly, ensuring compliance with the government’s taxation directives while minimizing administrative hurdles for healthcare workers.
