KPRA launches effort to broaden sales tax on services base

PESHAWAR: The Khyber Pakhtunkhwa Revenue Authority (KPRA) has launched efforts to broaden the sales tax on services base through engaging the team of the Department of Economics, University of Peshawar.

In this connection, a memorandum of understanding (MoU) was signed between the Department of Economics, University of Peshawar, and Governance and Policy Project here.

Under the agreement, the University of Peshawar will identify potential revenue resources from sales tax on services and identify entities for developing database of potential taxpayers in Khyber Pakhtunkhwa.

The scope of exercise is limited to prioritised sectors identified by the KPRA. The secondary data will be shared with KPRA for review and shared onward with the important stakeholders.

The most important step in this direction has been the decision to use the primary and secondary data for identification of new taxpayers who can be brought into the tax net.

The report would be used in various ways for this purpose including profiling and data mining and usage.

Once this is done, respective department would be sent the details and electronic profiles of these potential taxpayers so that tax notifications are issued by the relevant tax officers.

All the monitoring and control of the process would be established in provincial government authority for effective implementation.

KPRA Director General Tahir Orakzai has already geared up the efforts to enhance the revenue for the province and initiated number of activities to strengthen the authority on the one hand and awareness and sensitization of taxpayers on the other.