Jul-Mar Sales Tax on services in KP posts 21pc growth YoY

PESHAWAR: Khyber Pakhtunkhwa Revenue Authority (KPRA) has achieved a 21 percent growth in Sales Tax on Services during the first three quarters of the fiscal year 2025–26, collecting Rs. 34.60 billion during July–March, compared to Rs. 28.60 billion in the corresponding period of last year.

This increase of Rs. 6 billion reflects a strong and sustained improvement in tax compliance, enhanced enforcement, and continued expansion of the service sector tax base across the province.

According to figures released by KPRA’s media wing, the Authority generated a total revenue of Rs. 38.80 billion during the first nine months of the ongoing financial year. This includes Rs. 34.60 billion from Sales Tax on Services and Rs. 4.20 billion from Infrastructure Development Cess (IDC).

The overall revenue collection performance of Authority remained stable, with strong gains in Sales Tax on Services effectively reinforcing KPRA’s revenue stream during the ongoing financial year.

Director General (DG) KPRA, Miss Irum Naz, appreciated the performance of the Authority’s officers and staff, attributing the growth in Sales Tax on Services to effective planning, sustained enforcement, and institutional commitment.

“The consistent growth in Sales Tax on Services during the first nine months of the financial year reflects our strategic focus, improved compliance, and the dedicated efforts of KPRA’s workforce,” she said.

“We are confident that with continued focus and a data-driven approach, the Authority will achieve its annual revenue targets.”

The Director General also expressed gratitude to taxpayers for their trust and cooperation, terming it essential for sustained growth.

She further acknowledged the support and guidance of the Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi and the Provincial Minister for Finance, Mr. Muzzammil Aslam noting that their leadership has played a key role in strengthening revenue mobilization efforts in the province.

Copyright Business Recorder, 2026