Khyber Pakhtunkhwa Revenue Authority Inspects Private Hospitals in Mardan Over Tax Compliance

An enforcement team from the Khyber Pakhtunkhwa Revenue Authority (KPRA), operating out of its Mardan and Malakand regional office, carried out visits to multiple registered private hospitals and healthcare centres in Mardan district as part of a compliance drive, according to Associated Press of Pakistan.

During the visits, KPRA officials directed hospital administrations to submit detailed financial data, a standard step the authority takes to verify that taxable services provided by private healthcare facilities are being properly declared and taxed under provincial law. KPRA is the body responsible for collecting sales tax on services in Khyber Pakhtunkhwa, and private hospitals fall within the range of service providers subject to its oversight.

The report did not specify how many hospitals were visited or name the facilities involved, nor did it detail any penalties issued as a result of the inspections. It also did not indicate whether the visited hospitals were found to be non-compliant or whether the exercise was a routine audit.

Part of a Wider Compliance Push

Provincial revenue authorities in Pakistan, including KPRA, have periodically stepped up enforcement actions against registered businesses, including hospitals, clinics, and other service providers, to improve tax collection and reduce underreporting of income. Such enforcement visits typically require businesses to produce revenue records, patient billing data, and other financial documentation for review.

The requirement to submit financial data is often a precursor to further audit action if discrepancies are found between declared revenue and actual services rendered. Authorities in the province have in the past flagged healthcare and other service-sector businesses for incomplete tax filings.

No further details were provided on a timeline for the hospitals to comply with the request or on any follow-up actions planned by the KPRA team in the Mardan and Malakand region.