The Punjab Revenue Authority (PRA) has started the financial year 2025-26 on a strong note with impressive revenue growth in the first month. According to a spokesperson, PRA collected Rs19.5 billion in sales tax during July, while Rs506 million was generated under the Punjab Infrastructure Development Cess. The total reached Rs20.073 billion, showing a 46% increase compared to the same month last year. The spokesperson said this growth came without any increase in tax rates, reflecting the authority's improved strategy.
Since the 18th Amendment, provincial revenue authorities have become a key part of Pakistan's fiscal framework, with provinces empowered to collect sales tax on services. In Punjab, PRA plays a central role in providing resources for public development projects, infrastructure, and social services. The strong revenue growth at the start of the year gives confidence that the authority can meet or surpass its annual targets.
The PRA credited this success to broadening the tax base, targeting untapped sectors, and promoting tax compliance. Instead of burdening existing taxpayers with higher rates, the authority focused on outreach programmes and awareness workshops for businesses and stakeholders. These efforts have built trust and encouraged more people to join the tax net.
This momentum is vital for Punjab's economic growth, as higher collections reduce dependence on federal transfers and improve financial autonomy.
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