The Punjab Revenue Authority (PRA) has estimated to collect Rs 95 billion in the financial year 2014-15 as against Rs 62.35 billion for the financial year 2013-14 which is 52.4 per cent higher than last year's owing to the still untapped potential in the sales tax net.
The Authority also plans to establish Punjab Government Revenue Automation Limited (PGRAL) on the analogy of Pakistan Revenue Automation Limited (PRAL), the Punjab government has already granted the approval of it, the budget documents reveal. PGRAL would work in close collaboration with the Punjab Information Technology Board and undertake programs for process-reengineering and automation of other provincial taxes before their regular transfer to PRA. PRA has already finalised the enforcement rules and reward rules.
The Authority has already developed a complete system for real time monitoring of transactions in food sector services. PRA will soon apply a scheme of Restaurant Invoice Monitoring System (RIMS). After commencement of VAT-like sales tax on hotels, continuation of bed tax remains no more justified. Bed tax is therefore, being abolished. However, sales tax threshold exemptions on hotels are being reviewed so as to enlarge the outreach of sales tax and broadening of sales tax base. This will also help promote economic documentation of the hotels sector in Punjab. Ten new services have been incorporated in the sales tax net.