Provincial sales tax on services collection rises 28.5% during July-March FY2025-26
Punjab recorded the highest growth in sales tax collection on services among Pakistan’s provinces during the first nine months of fiscal year 2025–26, posting an increase of more than 38%, according to official data released by the finance ministry.
The province collected Rs244 billion in sales tax on services during July-March FY2025–26, compared with Rs174 billion in the corresponding period of the previous fiscal year.
Overall, total sales tax collection on services by all four provinces rose 28.54% to Rs536 billion during the period, up from Rs417 billion a year earlier.
Punjab emerged as the top-performing province in terms of growth, while Sindh ranked second with collection reaching Rs241 billion, compared with Rs194 billion in the same period last year.
Khyber Pakhtunkhwa recorded growth of 20.7%, with collection increasing to Rs35 billion from Rs29 billion.
However, official data indicated that collection by Balochistan declined by around 6% to Rs16 billion from Rs17 billion.
Under Pakistan’s constitutional framework, provincial governments are authorized to collect sales tax on services, while the Federal Board of Revenue (FBR) is responsible for collection of sales tax on goods.
Analysts said stronger provincial tax collection reflects improving economic activity in services sectors as well as enhanced enforcement and digitization measures adopted by provincial revenue authorities.
