PESHAWAR: Chief Minister Mahmood Khan has directed the relevant officials to make all-out efforts for enhancing revenue generation in the province through efficient taxation system by taking steps to achieve the targets set by Khyber Pakhtunkhwa Revenue Authority (KPRA).

According to a statement issued here on Wednesday, the chief minister said this during a briefing by KPRA at the Chief Minister House wherein he was informed that the revenue generated by KPRA remained high compared to other tax collecting agencies.

It was stated that the share of KPRA in provincial tax receipts till March 2019 stood at 54 per cent compared to the Board of Revenue, excise & taxation and transport departments’ shares of 25 per cent, 16 per cent and 5 per cent, respectively.

The meeting was informed that the total tax collection for the ongoing fiscal year, excluding telecom tax, was expected to be Rs11 billion whereas for the year 2019-20 the total tax collection was projected at Rs20 billion if sales tax on telecom services was restored by the Supreme Court.

The CM was informed that increase was recorded in the revenue generation after the reforms introduced by the government. From July 2018 to November 2018 the average tax collection on monthly basis, excluding telecom tax, stood at Rs750 million whereas after the introduction of reforms the average tax collection on monthly basis from November 2018 to March 2019 stood at Rs857 million, excluding telecom taxes.

These reforms include bringing KPRA under the administrative control of finance department, preparation of revenue enhancement plan and its implementation and launch of monthly performance reviews. It was stated that since suspension of sales tax on telecom services in May 2018, KPRA had taken effective reforms 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, was Rs7.59 billion whereas during the current financial year Rs7.17 billion had been collected so far. The CM expressed his satisfaction over the reforms and stated that every effort should be made to meet the set targets.

Published in Dawn, April 4th, 2019