The Punjab Revenue Authority (PRA) has expanded the reach of its single sales tax return (SSTR) system to two additional sectors: the oil and gas sector and the microfinance banking sector. This initiative is part of PRA’s ongoing efforts to streamline tax compliance and facilitate ease of doing business in Punjab.
A PRA spokesperson highlighted that the single sales tax return system, launched earlier this year, simplifies the filing process by allowing taxpayers to submit a unified return instead of navigating multiple submissions to various provincial revenue authorities and the Federal Board of Revenue (FBR). The system initially targeted the telecommunications sector as a pilot project in February and has now been extended to these two key sectors.
The PRA’s SSTR initiative was designed to eliminate redundancy and improve efficiency in tax compliance for businesses operating across multiple provinces. The extension to the oil and gas and microfinance banking sectors marks a significant step in achieving this objective. These sectors, which operate on a trans-provincial basis, will now benefit from a unified tax return process, reducing administrative burdens and fostering compliance.
The PRA spokesperson also confirmed plans to gradually expand the scope of the SSTR system to other trans-provincial sectors. Next in line are the banking and insurance sectors, which are expected to benefit from this streamlined approach in upcoming phases. This phased expansion ensures a smooth transition and adaptation for both taxpayers and the revenue authorities involved.
By extending the single sales tax return system, the PRA aims to promote a more business-friendly environment while maintaining robust tax compliance standards. The collaborative effort between the PRA and other provincial tax authorities demonstrates a commitment to modernizing tax systems and aligning them with international best practices.
This initiative is a testament to the PRA’s focus on facilitating businesses, reducing compliance costs, and enhancing operational efficiencies across key sectors of the economy.