PRA collects Rs28.83b in taxes in six months

LAHORE: Punjab Revenue Authority registered 22 percent revenue growth in non telecommunication sector during the first half of the fiscal year 2018-19, collected Rs28.832 billion taxes as compared to Rs23.664 billion taxes in corresponding period of previous fiscal year 2017-18.

Despite slow economic activities in the province which have been adversely affecting the revenue collection of the Federal Board of Revenue and other tax collection agencies, the PRA improved the direct tax collection which falls under non telecom sector. However, the non favourable government policies have also been impacting on the provincial tax revenue as it witnessed decline in the tune of both withholding tax and Punjab Infrastructure Development Cess (PIDC).

According to the official figures available with The News, the PRA recorded a shortfall of 21 percent and 18 percent, respectively on account of withholding tax collected by the different withholding agents, including the FBR and PIDC during the first six months of the fiscal year. The provincial exchequer has been adversely affected with suspension of the tax collection on pre-paid, and pots-paid cellular telecommunication services by the Supreme Court of Pakistan. The telecommunication sector is the single largest contributor to the provincial exchequer. The telecommunication sector contributed Rs12.832 billion to the provincial exchequer during the first half of the last financial year 2017-18 which was curtailed down to Rs5.888 billion, registered a decline of 54 percent. Furthermore, decline in withholding tax was 21 percent, coming down to Rs7.947 billion from corresponding period of Rs10.049 billion, and PIDC by 18 percent to 1.307 billion from Rs1.595 billion. However, PIDC was on continuous decline as the infrastructure development activities in both public and private sector has been halted since when the PTI government has come into the power in Punjab.

The PRA collected Rs44.004 billion during the first half of fiscal year as compared to the corresponding period of Rs48.170 billion.

PRA Chairman Javeed Ahmed talking to The News said that overall performance on non telecom revenue collection was encouraging as 22 percent growth was recorded which explained that the Authority was working in right direction. However, he believed that overall slow economic activities were also affecting the tax collection causing difficulties for tax collection agencies in Pakistan to meet the targets. Further, Javeed Ahmed said that suspension of telecom tax by the Supreme Court impacted on PRA as almost 25 percent total collection of the Authority contributed from this tune. He hoped that gradually economic activities were gearing up which would also positively impact on the provincial revenue collection.