PRA achieves record Rs26 billion sales tax collection in May 2025

Punjab revenue authority

Lahore, June 3, 2025 – The Punjab Revenue Authority (PRA) has set a new benchmark in its revenue collection efforts by securing a record Rs26 billion in sales tax on services during May 2025.

This represents an impressive 23% increase compared to the same month last year, underscoring the Authority’s growing efficiency and commitment to tax collection.

A PRA spokesperson shared on Tuesday that the cumulative collection from July 2024 to May 2025 now stands at Rs240 billion, reflecting a solid 16% year-on-year increase. This performance is seen as a major step forward in the Authority’s efforts to streamline and digitize tax collection mechanisms across Punjab.

Of the total revenue collected, Rs225 billion came from Punjab Sales Tax, demonstrating consistent annual growth in this critical segment. The PRA has also reported Rs5.6 billion in collections under the Punjab Infrastructure Development Cess, which saw an 18% increase from the previous fiscal period. Meanwhile, the Punjab Workers Welfare Fund contributed Rs9.3 billion—marking a notable 30% rise compared to the same period last year.

Importantly, this growth in sales tax collection has been achieved without the introduction of any new taxes or adjustments to existing tax rates. The PRA attributes its success to a comprehensive enforcement strategy and the adoption of advanced technology tools that have enhanced compliance and broadened the tax base.

The Authority further emphasized that its performance in the sales tax sector reflects both efficient governance and increased taxpayer awareness. It remains optimistic about exceeding its annual target by the end of the fiscal year through continued reforms and proactive engagement with service providers.

By maintaining a strong focus on transparency and modernization, the PRA continues to reinforce its role as a key driver in Punjab’s economic development through the effective collection of sales tax on services.

Officials say future initiatives will focus on digital integration, expanding the taxpayer base, and simplifying sales tax procedures to ensure sustained growth.