Punjab collects Rs66.41b sales tax in 1QFY26

Punjab Revenue

Lahore, October 9, 2025 – The Punjab Revenue Authority (PRA) has achieved remarkable growth in tax revenue, collecting Rs66.41 billion in sales tax on services during the first quarter of fiscal year 2025–26.

This represents a 28% increase from Rs51.98 billion collected in the same period last year, underscoring the province’s strong fiscal performance and improved compliance levels.

According to a PRA spokesperson, the revenue surge was achieved without introducing any new taxes or increasing existing tax rates, demonstrating the success of effective enforcement and digital reforms in Punjab. Additionally, Rs1.7 billion was generated through the Punjab Infrastructure Development Cess, further strengthening the province’s financial standing.

To sustain this growth, the PRA has intensified its crackdown on unregistered service providers across Punjab. Enforcement teams have been deployed to conduct surveys, identify non-compliant businesses, and issue immediate notices for registration. The authority’s new digital initiatives aim to simplify the tax process and encourage voluntary compliance among service providers.

A major step in this direction is the introduction of a user-friendly online registration system, enabling businesses to link their accounts with the E-IMS (Electronic Invoice Management System) and submit sales tax returns promptly.

The PRA has also cautioned that businesses failing to register by the end of this month will face penalties and potential legal action. The ongoing registration and digitization campaign aims to broaden the tax base, enhance transparency, and strengthen documentation of Punjab’s service economy, ensuring sustainable revenue growth for the province.