The Khyber Pakhtunkhwa Revenue Authority (KPRA) has witnessed an unprecedented increase of 75 percent in tax collection this year. The provincial Finance and Health Minister, Taimur Khan Jhagra, shared the news on his Twitter handle.
Performance of @kpra_official in terms of Service Tax collection
July-Feb 2018-19 => 6.19 Billion
July-Feb 2019-20 => 10.8 Billion
Growth till date => 75%
— PTI (@PTIofficial) March 1, 2020
The documents shared by Jhagra show that with five months to go before the financial year ends, KPRA’s year-to-date tax collection stands at Rs. 10.8 billion, as compared to the total collection of Rs. 10.4 billion last year. This is a 75 % YTD annual growth.
The numbers show that February remained the second-best month in terms of service tax collection, with a 110 percent growth. Last month, the KPRA collected Rs. 1.48 billion in a single month, as compared to Rs. 0.7 billion in February 2018.
So far, December 2019 was the most productive month for the revenue authority, which showed a whopping 259 percent growth with total collections of Rs. 2.66 billion.
Commenting on the development, Jhagra told the media that the KP revenue authority had collected up to Rs. 10 billion annually in terms of service tax collection, which contributed 40 percent to the total tax collection from the province.
However, this year, the provincial government introduced tax reforms with the collaboration of trade associations. Resultantly, we have witnessed a 75 percent growth thus far. With five months to go in the financial year, we have already surpassed the previous best [collection].
The minister added that KPRA’s target is Rs. 18 billion by the end of this fiscal year.