Punjab establishes special unit in PRA to boost tax collection

In a bid to enhance revenue generation, the Punjab government has decided to establish a Special Unit within the Punjab Revenue Authority.

The Punjab Revenue Authority (PRA) Special Unit will comprise professionals, including factoriers, tax consultants, legal experts and data analysts. The government has also granted in-principle approval for the recruitment of 130 enforcement officers and decided to expand the PRA’s operations to 30 districts.

Punjab Chief Minister Maryam Nawaz has set a deadline of October 30 for the extension of the Revenue Authority’s functions across the districts. Additional Deputy Commissioners General (ADCGs) will be assigned supplementary responsibilities related to the authority.

The government is also reviewing the inclusion of 19 new sectors under the provincial revenue framework. To facilitate taxpayers, the PRA has launched a dedicated mobile application.

Punjab CM stressed that “honest taxpayers must not be harassed” and directed that new sectors be brought into the tax net instead.

Read: Punjab collects Rs66.4b revenue in Q1

The chief minister further instructed that transparency in tax revenue collection be ensured.

A special meeting on revenue collection, chaired by Maryam Nawaz, was held in Lahore, where Director General PRA Moazzam Ali Supra gave a detailed briefing on tax targets and the inclusion of new sectors.

PRA collection

PRA recorded an impressive performance by collecting Rs66.41 billion in taxes during the first quarter of the current fiscal year 2025-26, reflecting a 28% increase compared to the collection of Rs51.98 billion in the same period of last year.

Additionally, Rs1.7 billion was collected under the Punjab Infrastructure Development Cess. "This significant growth has been achieved without the introduction of any new taxes or increase in tax rates during the current fiscal year," the PRA said in a statement on Thursday.

The revenue authority has also launched a comprehensive crackdown on unregistered service providers to expand the tax net. Enforcement teams have been mobilised to identify unregistered businesses, conduct field surveys and issue immediate notices.

Read more: PRA posts 46% surge in July tax collection

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.