The Punjab Revenue Authority (PRA) reported a 33% increase in sales tax collection on services in March 2026, driven by improved enforcement and expanded taxpayer coverage, according to an official statement on Friday.
A PRA spokesperson said the authority collected over Rs30 billion in March 2025–26, compared with Rs22.4 billion in the same month of the previous fiscal year, marking a strong year-on-year growth.
He added that cumulative collections for the first nine months (July–March) of fiscal year 2025–26 stood at over Rs250 billion, up from Rs181 billion in the corresponding period of the previous year. The increase of nearly Rs70 billion reflects sustained revenue mobilisation efforts across the province.
The spokesperson said the growth trend was supported by administrative reforms, improved monitoring systems, and stricter compliance measures targeting the services sector.
He noted that the activation of the Large Taxpayer Unit (LTU) in Punjab had begun yielding “positive results,” helping improve reporting and broadening the tax base.
PRA Chairman Moazzam Iqbal Sipra has directed field formations to intensify efforts to meet annual revenue targets, the statement said, adding that enforcement actions against non-compliant service providers had also been stepped up.
Officials said the authority was focusing on digital monitoring tools and data integration to reduce evasion and improve transparency in tax collection.
The PRA said the services sector remained a key contributor to provincial revenue, and further gains were expected in the remaining months of the fiscal year as compliance measures take full effect.
The authority reiterated its commitment to strengthening tax administration while ensuring a “fair and predictable” taxation environment for businesses operating in Punjab.