PRA Collects Record Rs 239 Billion in Tax Revenue

PRA Collects Record Rs 239 Billion in Tax Revenue

Lahore, July 1, 2024 – The Punjab Revenue Authority (PRA) has achieved a significant milestone by collecting over Rs 239 billion in tax revenue during the Financial Year (FY) 2023-24.

This figure is expected to rise further after the final settlement of civil accounts. Compared to the Rs 200.1 billion collected in FY 2022-23, this represents a growth of 20%.

A PRA spokesperson confirmed this news to the media on Monday, highlighting that this is the highest collection ever achieved by any provincial revenue authority in Pakistan, surpassing both other provincial authorities and even PRA’s own previous records.

The breakdown of the total collection reveals strong growth across various tax categories:

• Punjab Sales Tax on Services (PSTS): Rs 223.4 billion (up 17% from Rs 191.2 billion last year)

• Punjab Workers Welfare Fund (PWWF): Rs 10.2 billion (reflecting a substantial 92% increase compared to Rs 5.3 billion)

• Punjab Infrastructure Development Cess (PIDC): Rs 5.5 billion (demonstrating impressive growth of 55% from Rs 3.5 billion)

The positive trend continued in June 2024, the last month of FY 2023-24. PRA collected Rs 32.7 billion during this period, a 16% increase from Rs 28.2 billion collected in June 2023.

A closer look at June’s figures reveals:

• PSTS collection reached Rs 29 billion, reflecting a 9% increase.

• PWWF saw a significant 150% growth, with Rs 3 billion collected.

• PIDC collection rose by 83% to Rs 629 million, compared to Rs 344 million in June 2023.

The spokesperson attributed this success to the leadership of Punjab Finance Minister Mujtaba Shujaur Rehman and PRA Chairperson Dr. Javed Iqbal Sheikh. They acknowledged the challenges faced during FY 2023-24, particularly the economic downturn, but emphasized PRA’s persistent efforts to increase Punjab’s own source revenue.

As a major contributor to Punjab’s finances, PRA accounts for approximately 66% of the province’s Own Source Revenue (OSR). The authority remains committed to maximizing provincial revenue through a dedicated team and by encouraging taxpayers to fulfill their obligations by paying taxes on time.

Looking ahead to FY 2024-25, PRA’s strategy to achieve its target includes:

• Utilizing information technology effectively to broaden the tax base.

• Integrating databases with other organizations.

• Sharing data with entities like the Federal Bureau of Revenue (FBR) and other provincial departments.

• Automating business processes.

• Facilitating and educating taxpayers.

• Investing in workforce training.

• Expanding PRA’s reach.

The impressive revenue collection figures stand as a testament to the effectiveness of PRA’s strategy. By ensuring compliance with tax laws and fostering a business-friendly environment, PRA is contributing to economic growth in Punjab.