PRA identifies 21 sectors involved in under-reporting, under-invoicing

LAHORE: The Punjab Revenue Authority (PRA) in a bid to increase revenue of the province has identified 21 sectors including banks, financial services, insurance, stock exchange and commodity markets, which have been found involved in under reporting/under invoicing.

According to the PRA, a huge tax gap is found in these 21 sectors and there are complaints against them relating to registration, under reporting and under invoicing, Asad Aziz, Additional Commissioner Headquar-ters, PRA, told the Business Recorder. He, however, clarified that these sectors are already in the tax net and paying sales tax on services, but now it has been decided to fill the tax gap found in their services. This exercise will significantly increase revenue of the provincial government from sales tax on services, he observed.

The PRA has given the task to its operation wing to fill this tax gap. After the approval of chief minister, PRA, the main revenue collecting agency of Punjab government, has started working on collecting revenue from these 21 potential sectors by filling the tax gap and enforcement process will start shortly, Asad added.

These potential sectors identified are: banking, including financial services, insurance, telecom services, stock exchange, commodity exchange markets, stock brokerage, CDC share transfer, accountants and auditors, commission agents (companies), tax and corporate law consultants, franchise services, all electronic platforms, private construction, property developers and builders, goods transport, warehousing/storage, port services, transmission lines, supply chains, restaurants, including, food chains, marriage halls/catering companies, event management, hotels/guest houses, car dealers/property dealers etc., beauty parlours/saloons/spa etc., private withholding, public holding, recovery from audit paras and recovery from litigation cases.

“We have started working on these potential sectors and implementation on it will commence soon,” Muhammad Asif, Commissioner, Enforce-ment, PRA, who is supervising this whole exercise, informed the Business Recorder. However, he pointed out, it will be pre-mature to say at this time that how much additional revenue could be generated from these sectors by what he said ‘filling the tax gap’.

“We are working on the financial impact and will be able to quote revenue figures in a month or so,” he said. Moreover, a special enforcement unit has also been created within the PRA and process for recruitment of 130 enforcement officers has been initiated which will be completed soon, Asif said.

The PRA, with the approval of the Punjab chief minister, is opening district offices in those districts too which were earlier being monitored by the divisional commissioners of PRA. New districts offices will be open in Wazirabad, Mandi Bahauddin, Mianwali, Toba Tek Singh, Jhang, Okara, Khanewal, DG Khan, Layyah and Bahawalnaga.

Meanwhile, Punjab Finance Minister Mujtaba Shuja-ur-Rehman, during his visit to PRA headquarters, has said that enhancement in the financial resources of the province is the top most priority of the government. For this purpose, he added, modern technology is being utilized. To increase the tax revenue, work on digital monitoring dash board and applications is also going on.

The minister said 28 percent increase in PRA’s revenue collections in first quarter of the current financial year is commendable. He directed the PRA functionaries to intensify monitoring of the tax evaders and not to take any pressure in this regard. PRA Director General Moazzam Iqbal Sipra briefed the finance minister on tax collection and overall performance of his organisation.

Copyright Business Recorder, 2025