LAHORE: The registration of new businesses in Punjab under the Sales Tax on Services (STS) regime has posted a sharp increase during the first six months of the current fiscal (FY20), official statistics reveal.
The Punjab Revenue Authority (PRA), in line with its broadening of tax base policy, registered more than 15,439 businesses under multiple services in the first half of FY19. Majority of the new businesses belonged to IT, food & beverage and courier sectors.
With an increase in STS registrations, the total number of registrations have jumped to 78,000 during the period under review.
According to the PRA’s figures, the STS registrations stood at 12,533 in FY19, while total registrations remained at 62,561.
PRA, established in 2012, had registered 2,357 businesses in FY13. However, prominent growth in tax expansion was witnessed in FY16 when PRA registered 15,767 services with total registrations reaching up to 38,910.
The registration process had slowed down significantly in FY18 and FY19.
Talking to this scribe, a PRA official confirmed that the new businesses were getting registered speedily in Punjab.
“We are trying to meet our target of broadening the tax base and it’s likely to get more new registrations by the end of FY20.”
PRA Chairman Zainul Abideen said despite an economic slowdown, the authority was performing well as it registered over 23 per cent revenue growth in the first six months of the ongoing fiscal year.
Addressing a gathering at the Lahore Chamber of Commerce and Industry (LCCI), he said the provincial tax on services was already being collected through online banking channels while facilities of credit and debit cards would also be available soon.