PESHAWAR: The Khyber-Pakhtunkhwa Revenue Authority (KPRA) recorded a strong performance during the first half of the fiscal year 2025–26, collecting Rs23.26 billion in sales tax on services from July to December. This represents a 30 percent increase compared to Rs17.92 billion collected during the same period of the previous fiscal year, highlighting improved enforcement, planning, and expansion of the provincial tax base.
According to figures released by KPRA’s media wing on Thursday, the authority generated an additional Rs5.34 billion under sales tax on services during the six-month period. The growth reflects enhanced compliance, broader coverage of taxable services, and strengthened administrative measures aimed at improving revenue mobilisation across Khyber-Pakhtunkhwa’s services sector.
Overall, KPRA collected total revenues of Rs26.62 billion during the first half of the current fiscal year. This included Rs23.26 billion from sales tax on services and Rs3.36 billion from Infrastructure Development Cess (IDC). In comparison, total revenues during the corresponding period of the previous fiscal year stood at Rs23.81 billion, comprising Rs17.92 billion from sales tax on services and Rs5.89 billion from IDC.
While receipts from IDC declined year-on-year, the substantial increase in sales tax on services more than offset the shortfall, resulting in higher overall revenue collection. KPRA officials attributed this shift to a stronger focus on service-sector taxation and more effective monitoring mechanisms.
Director General KPRA, Fouzia Iqbal, praised the performance of the authority’s officers and staff, stating that the notable growth in sales tax collection was the outcome of effective planning, improved enforcement, and sustained efforts by KPRA teams. She said the results demonstrate the authority’s ability to deliver strong revenue outcomes through structured strategies and professional execution.
“The remarkable increase in sales tax on services reflects the team’s sound strategy, hard work, and professional competence. With the same commitment and organized approach, KPRA has the full potential to achieve its targets for the current fiscal year,” she said.
The director general also expressed appreciation for taxpayers across the province, acknowledging their trust, cooperation, and partnership with the revenue authority. She noted that voluntary compliance and engagement by businesses and service providers played a key role in achieving the improved revenue performance.
In addition, Fouzia Iqbal acknowledged the guidance and support of Chief Minister Sohail Afridi and the Chief Minister’s Advisor on Finance, Muzammil Aslam. She termed their leadership instrumental in driving reforms, strengthening institutional capacity, and supporting initiatives aimed at enhancing revenue collection in Khyber-Pakhtunkhwa.
KPRA officials stated that the authority will continue focusing on broadening the tax base, improving compliance, and leveraging data-driven enforcement to sustain revenue growth. The improved performance in the first half of FY2025–26 is seen as a positive signal for provincial finances, supporting development spending and fiscal stability in the months ahead.
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