KP Tax Authority Records 30% Increase in Sales Tax Collection

PESHAWAR:

The Khyber-Pakhtunkhwa Revenue Authority (KPRA) collected Rs 23.26 billion as sales tax on services during the first six months (July to December) of the financial year 2025-26, registering a 30 per cent increase over the Rs 17.92 billion collected during the corresponding period of the previous financial year.

According to figures released by the KPRA media wing on Thursday, an additional Rs5.34 billion was recorded under service sales tax, reflecting the expansion of the tax net and improved enforcement and planning in the province’s service sector.

Overall, KPRA collected total revenue of Rs 26.62 billion during the first half of the current financial year, including Rs 23.26 billion from Services Sales Tax and Rs 3.36 billion from the Infrastructure Development Cess (IDC). In comparison, total revenue during the same period last year stood at Rs 23.81 billion, including Rs 17.92 billion from service sales tax and Rs 5.89 billion from IDC.

KPRA Director General Fouzia Iqbal commended the performance of officers and staff of the authority, saying the significant growth in sales tax on services was the result of effective planning, enforcement measures and the tireless efforts of KPRA officials.

“The remarkable increase in sales tax on services reflects the strong strategy, hard work and professional competence of the team. With the same commitment and organized approach, KPRA has all the potential to achieve its targets for the current financial year,” she said.

The DG also expressed gratitude to taxpayers for their trust, cooperation and partnership, stressing that their support has played a vital role in KPRA’s achievements. She further acknowledged the advice and support of Chief Minister Sohail Afridi and Adviser to the Chief Minister on Finance, Muzammil Aslam, terming their leadership crucial in implementing reforms and improving revenue collection in the province.

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