KP govt eyes Rs50bn revenue generation by 2023 | Pakistan Today

KP govt eyes Rs50bn revenue generation by 2023

PESHAWAR: A high-level meeting with Chief Minister Khyber Pakhtunkhwa Mehmood Khan in the chair was Wednesday informed that by 2023, KPRA (KP Revenue Authority) will have increased its tax collection capacity to Rs50 billion on yearly basis.

The revenue generated by KPRA remained high as compared to other tax collecting agencies in the province.

The share of KPRA in provincial tax receipts till March 2019 remained at 54% as compared to Board of Revenue, Excise & Taxation and Transport departments shares of 25%, 16% and 5% respectively

The meeting was also informed that the total tax collection for the ongoing fiscal year, excluding telecom tax, is expected to be Rs 11 billion whereas for the year 2019-20 the total tax collection, is expected to be Rs 20 billion if sales tax on telecom services is restored by the Supreme Court of Pakistan.

The Chief Minister was informed that the reforms introduced by the incumbent Government have ensured an increase in revenue generation.

From July 2018 till November 2018 the average tax collection on monthly basis, excluding telecom tax, remained Rs750 million whereas after the introduction of reforms, from November 2018 till March 2019, the average tax collection on monthly basis has been rupees 857 million excluding telecom taxes.

These reforms include bringing the KPRA under the administrative control of Finance Department, preparing of revenue enhancement plan, implementation of the enhancement plan for the year 2018-19 and the launching of monthly performance reviews.

The meeting was further informed that since the suspension of Sales Tax on telecom services in May 2018, KPRA has taken effective reforms and measures to reduce the gap by introducing reforms in other sectors.

This is evident from the fact that the total tax collection during the previous fiscal year, including telecom tax, remained at Rs 7.59 billion whereas, during the current financial year, Rs 7.17 billion have been collected so far.

The CM said that all out efforts should be made to enhance the revenue generation in the province through effective and efficient taxation system adding that pragmatic steps should be taken to realize the targets set by KPRA.

The Chief Minister expressed satisfaction over the reforms and stated that every effort should be made to meet the set targets directing the concerned authorities to come up with a detailed plan explaining the ways and means to meet the targets set for the next financial year.

The Chief Minister was also informed that monthly evaluation of KPRA has been initiated to ensure efficiency and the reforms undertaken are based on four major factors including an increase in the registration of taxpayers, improvement in enforcement and compliance, awareness of taxpayers & their facilitation and enhancing organisational efficiency.

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