Despite the numerous challenges that the government is facing, including the Covid-19 outbreak which created several problems for the Khyber Pakhtunkhwa (K-P) government, the K-P Revenue Authority (KPRA) has shown significant improvements in terms of revenue generation.
According to official statistics from the KPRA, there has been a 33 per cent growth in the first three months of the financial year 2020 as compared to the first three months of the financial year 2019. Officials say the authority was going in the right direction despite all odds.
KPRA collects sales tax on services as well as from the Infrastructure Development Cess (IDC) in the province. Official statistics show that Rs4.03 billion were collected through sales tax on services, including Rs299 million through IDC, as compared to last fiscal year’s collection of Rs3.26 billion.
The telecommunication sector showed 134 per cent growth in the first quarter of the current fiscal year and its revenue collection jumped from Rs0.69 billion to Rs1.6 billion in the first quarter of the current fiscal year. Other sectors, including banking services, franchises services, cargo services and manpower services, also showed growth compared to 2019.
Officials say that despite having been adversely affected by the Covid-19 lockdown, things have been going in the right directions as evident from the statistics. They added that the government provided tax relief package to encourage businesses and economic activities in K-P, which had an impact on revenue, but overall, the tax compliance increased with the decrease rates as people were encouraged to register their businesses with the authority.
Last year’s July collection was Rs1.1 billion as compared to Rs1.27 billion this year with a 10 per cent growth. A total of 53 per cent growth rate was recorded in August after Rs1.42 billion were collected as compared to Rs0.92 billion last year. In September, the authority recorded a 42 per cent growth rate with a collection of Rs1.62 billion as compared to Rs1.1 billion collected in September last year.
Director-General KPRA Fayyaz Ali Shah, however, says the annual target was Rs20 billion for the current year.
“Our growth rate is improving since economic activities are resuming and we hope to cross our target of Rs20billion,” Shah told The Express Tribune. “The improvement in revenue collection despite the ongoing challenges means the authority is performing well.”
According to Shah, the authority was utilising all its resources for a self-reliant province, adding that the revenue increased with each passing day.
“We aim to increase the fiscal space for the government so that it has more resources to spend on its people. We are striving for a fiscally stable and self-reliant Khyber Pakhtunkhwa,” he said. “The the pace of revenue streams varies each month due to several factors but the overall outcome is positive and the authority revenue is increasing every month.”
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