The Punjab Revenue Authority (PRA) has achieved remarkable growth in tax collection, reporting a 16.16% increase in December 2024. Over the first half of fiscal year 2024 (H1 FY24), the PRA collected Rs118 billion in tax revenue, reflecting a 10.35% rise compared to the same period last year.
PRA Growth in Tax Revenue
PRA Tax Collection Overview (July-Dec FY24)
| Period | Tax Revenue (Rs) | Growth Compared to Previous Year |
|---|---|---|
| July – December 2024 | Rs118 Billion | 10.35% Increase |
The PRA total tax revenue of Rs118 billion in the first half of the fiscal year shows a steady upward trend. This indicates that the tax collection process is becoming more effective and efficient.
Key Contributors to Growth
Key Areas of Tax Revenue Growth
| Tax Category | Growth (%) |
|---|---|
| Sales Tax on Services | 8% |
| Punjab Infrastructure Development Cess | 25% |
| Punjab Workers Welfare Fund | 76% |
Key contributors to this growth include an 8% increase in sales tax on services and a 76% surge in the Punjab Workers Welfare Fund. The Punjab Infrastructure Development Cess also grew by 25%, boosting the overall tax revenue.
No New Taxes or Rate Increases
Tax Policy Impact on Growth
| Factor | Impact on Growth |
|---|---|
| New Taxes | None |
| Tax Rate Increases | None |
| Taxpayer Engagement & Expansion | Major Contributor |
Remarkably, PRA achieved these results without introducing new taxes or increasing tax rates. This success is due to their efforts in expanding the tax net and engaging with stakeholders through workshops.
Transparency and Technological Advancements
Technological Improvements in PRA Operations
| Initiative | Impact |
|---|---|
| PRA-IRIS System for Tax Filing | Enhanced transparency and efficiency |
| Integration with eIMS & FBR POS | Streamlined tax data access |
| Single Sales Tax Return Introduced | Simplified process for taxpayers |
The PRA introduced the PRA-IRIS system, improving transparency and efficiency. Additionally, the integration of PRA’s Electronic Invoice Monitoring System with the Federal Board of Revenue’s Point-of-Sale system has streamlined tax data access.
New Tax Filing System for Specific Sectors
Extension of Single Sales Tax Return
| Sector | Extension of Single Sales Tax Return |
|---|---|
| Oil & Gas | Included |
| Microfinance Banks | Included |
| Other Inter-Provincial Businesses | Future plans |
The introduction of the single sales tax return has been extended to the oil and gas sectors and microfinance banks. PRA plans to expand this initiative to other inter-provincial business sectors.
Looking Ahead Optimistic Revenue Targets
PRA Future Plans for Tax Collection
| Plan | Goal |
|---|---|
| Expanding Single Sales Tax Return | Broaden coverage to more sectors |
| Continued Technological Advancements | Enhance efficiency and compliance |
| Surpassing Tax Targets | Achieve higher revenue growth |
PRA is confident that it will surpass its tax collection targets for the fiscal year. The authority aims to expand its initiatives and continue improving its processes to achieve even greater revenue growth.
Summary
The PRA performance in tax collection during the first half of FY24 is impressive. By expanding the tax base, adopting new technologies, and engaging with taxpayers, PRA is on track to meet and exceed its targets. The future looks promising as the authority continues to refine its strategies and strengthen the tax collection process.
