PESHAWAR: The Khyber Pakhtunkhwa government has approved the Digital Payments Act 2025, under which charging consumers additional fees on digital transactions will be prohibited.
Khyber Pakhtunkhwa Chief Minister Sohael Afridi has approved the Digital Payments Act 2025, following which the bill has been forwarded to the cabinet for approval.
With the introduction of this legislation, Khyber Pakhtunkhwa has become the first province to establish a legal framework for a digital economy.
The law will make digital payments through QR codes mandatory in government, business and service sectors and no new sales tax on digital payments will be levied on registered businesses for two years.
It would be illegal to charge consumers extra for digital payments, and a business that refused would be in violation of the law.
Digital transactions will increase transparency, convenience and financial security while ensuring the protection of consumer and business data.
Public Wi-Fi and other digital services will be provided in markets for public convenience, while the education curriculum will include digital literacy and ease the onboarding process.
The Chief Minister said that KP would become a model of cashless economy in the country and provide guidance to the Federation and other provinces, and the bill would be a milestone for financial inclusion, transparency and modernization of the economy.
