Karachi, February 2, 2024 – The provinces of Pakistan have recorded an impressive collection of Rs 230 billion as sales tax on services during the first half (July – December) of fiscal year 2023-24, as per official data released by the federal finance ministry.
This reflects a substantial increase of 23.43% compared to the collection of Rs 186.34 billion during the same period in fiscal year 2022-23.
Among the provinces, Punjab stands out as the leader, collecting the highest amount of Rs 101 billion during the first half of the current fiscal year. This marks an 11% increase when compared with the Rs 91 billion collected in the corresponding half of the previous fiscal year. The robust performance of Punjab in sales tax collection underscores its economic activities and fiscal management.
Sindh has exhibited remarkable growth by collecting Rs 100.56 billion during the first half of the current fiscal year, posting an impressive 35% jump over the Rs 74.66 billion collected in the same period of the last fiscal year. The surge in collection reflects the province’s thriving service sector and effective tax administration.
Khyber Pakhtunkhwa (KPK) recorded an impressive 41% growth, collecting Rs 18.72 billion during July – December 2023-24, compared to Rs 13.27 billion in the same period of the previous fiscal year. The notable increase highlights the economic dynamism and tax compliance efforts in the province.
Meanwhile, Balochistan, too, showcased robust growth, collecting Rs 9.66 billion as sales tax on services during the first half of the current fiscal year. This figure represents a growth of 28.8% compared to the Rs 7.5 billion collected in the same half of the last fiscal year. Balochistan’s positive performance signals economic progress and enhanced revenue generation.
The overall surge in sales tax collection across provinces reflects a positive economic trajectory, with increased economic activities and improved tax compliance. The federal finance ministry’s data indicates a collective commitment to fiscal responsibility and revenue mobilization by the provincial governments.
The notable growth in sales tax on services aligns with the broader global trend of governments relying on indirect taxes to boost revenue. It is crucial for provinces to continue implementing effective tax policies, fostering economic growth, and ensuring transparent fiscal management to sustain this positive momentum.
As the fiscal year progresses, stakeholders anticipate continued efforts to enhance tax collection efficiency, promote economic activities, and achieve sustainable fiscal outcomes for the provinces. The positive trajectory in sales tax on services collection is a positive indicator for the overall economic health of Pakistan’s provinces, contributing to national development and financial stability.
