Khyber Pakhtunkhwa Revenue Authority Achieves 46% Tax Collection Growth

The Khyber Pakhtunkhwa Revenue Authority (KPRA) has showcased an extraordinary achievement with a 46% increase in tax collection from July to January, reaching an impressive Rs28.92 billion. This significant rise not only highlights the robustness of the province’s economy but also underscores the government’s unwavering commitment to fiscal responsibility.

The surge in KPRA’s tax collection is a testament to effective financial management and the implementation of strategic policies under the guidance of Advisor to the Chief Minister on Finance and Interprovincial Coordination, Muzzamil Aslam. The authority’s success is further bolstered by the commendable efforts of the KPRA team, led by Director General Fouzia Iqbal, who praised the dedication and hard work that propelled this achievement.

In the first six months of the financial year 2024-25, KPRA announced a collection of Rs24.2 billion, marking a 45% growth compared to the previous year’s Rs16.7 billion. This substantial increase of Rs7.5 billion reflects the strengthening economic activity and improved tax compliance within the region.

Breakdown of Revenue Streams

The KPRA’s media wing detailed the sources of this robust revenue collection. The authority amassed Rs18.15 billion from the sales tax on services, a significant rise from the Rs14.6 billion collected last year, marking a 24% increase. Additionally, the collection from the Infrastructure Development Cess (IDC) soared to Rs6.07 billion, up from Rs2.1 billion the previous year, showcasing an astonishing 189% growth.

Sales tax on services and the IDC have emerged as pivotal contributors to the revenue, reflecting the government’s strategic focus on diversifying income streams and bolstering non-tax revenues. With non-tax revenue accounting for over 55% of the total collection, Khyber Pakhtunkhwa’s overall revenue growth is set to exceed 50%, an impressive feat in a challenging economic climate.

The remarkable performance of KPRA is also a result of the steadfast leadership of Chief Minister Ali Amin Gandapur and the supportive role of the government in fostering an environment conducive to growth. Advisor Muzzamil Aslam expressed gratitude to the Chief Minister for his continuous support and congratulated the KPRA staff for their relentless efforts.

Director General Fouzia Iqbal’s strategic approach and her confidence in the team’s ability to surpass annual targets have been pivotal. She remarked, “With the same level of commitment and our strategic approach, I am confident that we will surpass this year’s target. By the end of June, KPRA will once again stand out as a beacon of excellence in performance.”

Despite the broader economic recession, KPRA’s resilience and innovation in tax administration have been instrumental in achieving these outstanding results. The authority’s adaptability and focus on maximizing collections from existing and new revenue streams have fortified Khyber Pakhtunkhwa’s financial standing.

The collaboration between KPRA and the taxpayers, marked by trust and cooperation, has been crucial. The Director General acknowledged the role of taxpayers in KPRA’s success, emphasizing that their confidence and compliance have enabled the authority to execute its mandate effectively.

Looking ahead, KPRA aims to maintain this momentum, leveraging technology and data-driven strategies to enhance tax collection efficiency and broaden the tax base. With sustained efforts and the unwavering support of the provincial leadership, KPRA is poised to not only achieve but potentially exceed its revenue targets for the coming fiscal year.

The continuous improvement in tax collection capabilities and the strategic expansion of revenue sources are setting new benchmarks for fiscal management in Pakistan, positioning Khyber Pakhtunkhwa as a model for other provinces to emulate.