PESHAWAR: Khyber Pakhtunkhwa Revenue Authority (KPRA) recorded a 20 percent growth in Sales Tax on Services (STS) collection during the financial year 2025-26, collecting overall revenue of Rs53.7 billion as compared to Rs51.8 billion collected during the previous fiscal year.
According to details shared by KPRA’s Media Wing on Thursday, the authority collected Rs48.71 billion under Sales Tax on Services against Rs40.60 billion collected during the last financial year, registering an increase of Rs8.11 billion.
KPRA also surpassed its assigned STS collection target of Rs45.5 billion. The impressive growth reflects the authority’s strong performance in the sector-wise collection of Sales Tax on Services through enhanced tax administration, effective enforcement, and improved taxpayer facilitation.
The Authority collected Rs5 billion under Infrastructure Development Cess (IDC) during the financial year. The reduction in IDC receipts was mainly due to the closure of the Pakistan-Afghanistan border crossings.
Director General KPRA, Miss Irum Naz, appreciated the dedication and hard work of KPRA officers and officials for delivering outstanding growth in the Authority’s core tax collection. “I am glad that KPRA Headquarters and all regional offices successfully achieved their respective Sales Tax on Services collection targets assigned for the financial year 2025-26. I am confident that, with the same strategy, dedication and commitment, they will achieve next year’s targets as well,” she said.
She expressed gratitude to the Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi, Advisor to the Chief Minister of Finance, Muzzammil Aslam and Secretary Finance Capt. Kamran Ahmad Afridi (retd), for their continued guidance and support, which played a vital role in strengthening KPRA’s institutional performance and revenue reforms. She also thanked the taxpayers for their continued trust and cooperation, saying that their commitment to voluntary compliance remains the foundation of the Authority’s success.
DG KPRA said, “The encouraging growth in Sales Tax on Services reflects taxpayers’ confidence in KPRA and the effectiveness of our ongoing reforms. We will continue to expand the tax base, strengthen compliance, enhance digital services, and facilitate taxpayers to ensure sustainable growth in provincial own-source revenues.”
Copyright Business Recorder, 2026
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