K-P sets target of Rs50b tax collection by 2023

Khyber Pakhtunkhwa revenue authority collected Rs11b so far in current fiscal

Our Correspondent April 04, 2019
Representational image. PHOTO: REUTERS

PESHAWAR: The Khyber-Pakhtunkhwa government plans to increase tax revenue to at least Rs50 billion by the end of its term in 2023.

Enhancing revenue generation will require pragmatic steps, said Chief Minister Mahmood Khan.

Chairing a briefing by Khyber-Pakhtunkhwa Revenue Authority (KPRA), CM Mahmood said efforts should be made to enhance the revenue generation in the province through the effective and efficient taxation system.

“Pragmatic steps should be taken to realise the targets set by KPRA,” he said.

During the briefing, the CM was informed that revenue generated by KPRA remained high as compared with other tax collecting agencies.

As per details, the share of KPRA in provincial tax receipts till March 2019 remained at 54% as compared to Board of Revenue, Excise & Taxation and transport department shares of 25%, 16%, and 5% respectively.

The meeting was also informed that the total tax collection for the ongoing fiscal year, excluding telecom tax, is expected to be Rs11 billion whereas for the year 2019-20 the total tax collection, is expected to be Rs20 billion if sales tax on telecom services is restored by the Supreme Court of Pakistan.

The chief minister was informed that the reforms introduced by the incumbent government have ensured an increase in revenue generation.

From July 2018 till November 2018 the average tax collection on monthly basis, excluding telecom tax, remained Rs750 million whereas after the introduction of reforms, from November 2018 till March 2019, average tax collection on monthly basis has been Rs857 million excluding telecom taxes.

These reforms include bringing the KPRA under the administrative control of the Finance Department, preparing of revenue enhancement plan, implementation of the enhancement plan for the year 2018-19 and launching of monthly performance reviews.

The meeting was further informed that since the suspension of Sales Tax on telecom services in May 2018, KPRA has taken effective reforms and measures to reduce the gap by introducing reforms in other sectors. This is evident from the fact that the total tax collection during the previous fiscal year, including telecom tax, remained at Rs7.59 billion whereas, during the current financial year, Rs7.17 billion have been collected so far.

The Chief Minister expressed satisfaction over the reforms and stated that every effort should be made to meet the set targets directing the concerned authorities to come up with a detailed plan explaining the ways and means to meet the targets set for the next financial year.

The meeting was also informed that by 2023, KPRA will have increased its tax collection capacity to Rs50 billion on a yearly basis.

The chief minister was also informed that monthly evaluation of KPRA has been initiated to ensure efficiency and the reforms undertaken are based on four major factors including an increase in the registration of taxpayers, improvement in enforcement and compliance, awareness of taxpayers & their facilitation and enhancing organisational efficiency.

Published in The Express Tribune, April 4th, 2019.

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