LAHORE: The Punjab government has registered a growth of 62 percent in collection of sales tax on services in the month of June. According to provisional collection figures the Punjab government has collected revenue of Rs.1percent.47 Billion in the month of June 2021 with an incredible growth of 62percent over the collection of Rs.9.percentpercent Billion in June 2020 last year.
Meanwhile, Punjab’s premier Revenue Collection Authority has registered remarkable revenue collection of Rs.144.1 Billion for the FY 2020-21 closing on June 30 registering a growth of 32.7percent over the collection of Rs.108.percent9 Billion last year.
Considering the impact of Covid-19 the initial target for the revenue authority of the Punjab government was set at Rs.12percent billion which, in view of the unprecedented growth shown by the Authority, was later revised to Rs.141.1percent Billion. The Authority achieved the initial target of Rs.12percent Billion in May this year and was confident on achieving the revised target. According to the Chairperson of the Authority, this was the first year in the history of the Authority that the revenue target was revised upwards and the collection figures were clear evidence that the Punjab government’s policy of revenue collection through facilitation and stakeholder involvement had been successful.
He said that although the rates of sales tax on services for more than 2percent services were reduced through the Finance Act, 2020 to provide relief to the sectors affected by the COVID-19 pandemic, the Authority had managed to counter the effects of the reduction and had shown an increase in revenue following the Punjab government’s policy of taxpayer facilitation and education and collaboration with all stakeholders.
Copyright Business Recorder, 2021