KPRA Service Tax Collection Rises 21%

The Khyber Pakhtunkhwa Revenue Authority (KPRA) has reported a 21% increase in the collection of sales tax on services during the first nine months of FY2025–26, with total receipts reaching Rs34.6 billion, compared to Rs28.6 billion recorded during the corresponding period of the previous fiscal year.

This increase of Rs6 billion is attributed to enhanced taxpayer compliance, strengthened enforcement mechanisms, and a broadening of the provincial services tax base, as reflected in official data released by the authority.

Aggregate revenue collection for the July–March period amounted to Rs38.8 billion, inclusive of Rs4.2 billion generated through Infrastructure Development Cess (IDC).

Officials have indicated that the growth in sales tax on services constituted the principal driver of overall revenue performance during the period under review, significantly contributing to total collections.

Director General Irum Naz attributed the improved performance to effective planning strategies, robust enforcement measures, and enhanced institutional efficiency, expressing confidence in the authority’s ability to meet its annual revenue targets.

She further acknowledged the role of taxpayer participation and credited the provincial leadership for its continued support in advancing revenue mobilisation initiatives.