Lahore, July 23, 2023 – The Punjab Revenue Authority (PRA) is striving to achieve its ambitious tax collection target of Rs 240 billion for the current financial year by exploring previously untapped sectors, with a special focus on real estate.
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A spokesperson for the PRA revealed to the Associated Press of Pakistan that the authority has been making significant strides since its inception a decade ago. For the fiscal year 2023-24, the PRA was assigned the challenging task of collecting Rs 240 billion in taxes, and to meet this target, it is eyeing the potential of the real estate market, housing societies, property development, developers, high-rise buildings, and other related sectors that have been overlooked in the past.
The PRA’s past performance has been commendable, surpassing its revenue targets consistently. In the previous fiscal year (2022-23), the PRA not only achieved its target of Rs 197 billion but also exceeded expectations by collecting over Rs 200 billion in taxes. This success was reflected in the fact that the PRA outperformed the revenue authorities of other provinces in Pakistan.
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The spokesperson attributed this success to the inclusion of various sectors within the PRA’s tax net. Sectors like production houses, fashion designing, fitness clubs, telecom, banking, insurance, hotels, advertising, franchise services, and security companies, among others, have been contributing to the tax collection.
Furthermore, the spokesperson outlined the revenue collection strategy for the current fiscal year, emphasizing the registration of approximately 1400 housing societies with the Lahore Development Authority. This move is expected to generate significant tax revenue. Additionally, the IT sector has been partially taxed, with a reduced rate on certain transactions to promote its development.
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The hotel industry has also seen notable changes, with the implementation of a 16 percent service tax on cash payments and 5 percent on credit card transactions. This approach has led to an increase in transactions through the banking system and minimized tax evasion.
Addressing any potential concerns about transparency and accountability, the spokesperson reassured the public that the PRA maintains a clean image, with no complaints registered against the organization.
The PRA currently operates from its head office in Lahore, with commissionerate offices established in eight divisions across the province. As part of its expansion plans, the authority is constructing four new district offices in Murree, Gujarat, Dera Ghazi Khan, and Bahawalpur.
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Looking to the future, the PRA aspires to evolve into a prominent tax collection institution with a target of Rs 1000 billion. While such an endeavor will take time and concerted effort, the PRA remains optimistic about achieving this ambitious goal gradually.
With a comprehensive strategy that includes focusing on untapped sectors, particularly real estate, the Punjab Revenue Authority aims to boost tax revenues and contribute to the economic growth of the province.
