KPRA achieves 30% growth in sales tax on services in first half of FY2025-26

PESHAWAR: The Khyber Pakhtunkhwa Revenue Authority (KPRA) has recorded a 30 percent growth in Sales Tax on Services collection during the first half of the fiscal year 2025-26, collecting Rs23.26 billion during July–December, compared to Rs17.92 billion in the corresponding period of last year.

This represents an increase of Rs5.34 billion, reflecting a strong and sustained improvement in service-sector tax compliance across the province.

According to figures released by KPRA’s media wing on Thursday, the Authority generated a total revenue of Rs26.62 billion during the first six months of the ongoing financial year. This includes Rs23.26 billion from Sales Tax on Services and Rs3.36 billion from the Infrastructure Development Cess (IDC). In the same period last year, KPRA’s overall collection stood at Rs23.81 billion, comprising Rs17.92 billion from Sales Tax on Services and Rs5.89 billion from IDC.

Director General KPRA, Fouzia Iqbal, praised the Authority’s officers and staff for their performance, terming the growth in Sales Tax on Services a result of effective planning, sustained enforcement, and institutional commitment.

“The impressive growth in Sales Tax on Services reflects the strategic planning, performance, and hard work of the KPRA team,” she said, adding that with the same level of dedication and a focused strategic approach, KPRA is well-positioned to achieve its annual revenue targets.

The Director General also expressed gratitude to taxpayers for their trust, confidence, and cooperation, which she said remained central to KPRA’s success. She further acknowledged the support and guidance of the Chief Minister Khyber Pakhtunkhwa, Mr. Muhammad Sohail Afridi, and Advisor to the Chief Minister on Finance, Mr. Muzzammil Aslam, noting that their leadership has played a key role in enabling reforms and strengthening revenue mobilization.