Punjab sales tax collection rises 21%

Province receives Rs22.2 billion in Jan this year

LAHORE:

The Punjab Revenue Authority (PRA) achieved a record sales tax collection of Rs22.21 billion in January 2025 against Rs18.39 billion in January 2024, reflecting a 21% growth.

The PRA has collected a total of Rs142 billion in tax revenue in the current fiscal year, higher by 12% compared to the previous year. Data breakdown shows the Punjab sales tax collection grew 10% while the Punjab Infrastructure Development Cess rose 30% and the Punjab Workers Welfare Fund recorded a 46% increase.

"Notably, no new taxes or tax rate increases were introduced in the current fiscal year. Instead, the PRA continued to achieve its tax targets through stakeholder engagement, taxpayer awareness workshops and tax base expansion," the authority said in a statement. It remains optimistic about surpassing this year's tax target.

A major step towards modernisation, IRIS, an advanced tax return filing system, was introduced to enhance transparency and facilitate a paperless office environment. Furthermore, the integration of PRA's Electronic Invoice Monitoring System with the Federal Board of Revenue's (FBR) Point of Sale (POS) system is expected to streamline access to the tax data. The single sales tax return has been extended to oil and gas, microfinance banks, insurance and banking sectors, with further expansion planned.