LAHORE: The Punjab Revenue Authority (PRA) was assigned a revenue collection target of PKR 166.550 billion for FY 2019-20.
According to the budget document, the target was based on the revenue collection trends of the preceding years, revenue generation potential of the assigned taxes and tax policy measures taken by the government. However, due to overall impact of COVID-19 on the service sector and the reduction of PSTS on 20 plus sectors from 16% to 0% for the last quarter of FY19-20 under the tax relief package, the R.E for FY19-20 has been set at PKR 105 billion. This amount also includes the transfer of PKR 4.288 billion claim pending with the federal government regarding wrong transfer of Punjab Revenue Authority (PRA) funds to the Federal Board of Revenue (FBR) by the National Bank of Pakistan (NBP).
Services such as telecommunications, banking/ insurance, contractual execution, etc were expected to be the primary revenue spinners for the PRA during the financial year and have also generated the highest revenue amongst different sectors.
The Punjab government has also given relief on sales tax in the current budget. Punjab Sales Tax on Services (PSTS) will not be charged on construction services provided by property developers, builders and promoters, PSTS on health insurance and services provided by doctors and hospitals at 0%, PSTS reduced to 5% for 14 sectors affected by COVID-19, adoption of new valuation table for UIPT postponed for 1 year, COVID-19 centric administrative relief measures in collection of UIPT, token fee and vehicle registration fee etc.
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