KP Revenue Authority sales tax collection rises 20% to Rs48.71bn in FY26

The Khyber Pakhtunkhwa Revenue Authority (KPRA) collected Rs48.71 billion under Sales Tax on Services (STS) during FY2025-26, registering 20% growth over the previous fiscal year.

According to details shared by KPRA’s Media Wing on Thursday, STS collection increased by Rs8.11 billion from Rs40.60 billion in FY2024-25.

The authority also surpassed its assigned STS collection target of Rs45.5 billion for the year.

KPRA’s overall revenue collection stood at Rs53.7 billion in FY2025-26, compared with Rs51.8 billion collected in the previous fiscal year.

The authority also collected Rs5 billion under the Infrastructure Development Cess (IDC).

KPRA said the decline in IDC receipts was mainly caused by the closure of Pakistan-Afghanistan border crossings.

Director General KPRA Miss Irum Naz appreciated the performance of KPRA officers and officials, saying the headquarters and all regional offices achieved their assigned STS collection targets for FY2025-26.

The director general said taxpayers’ cooperation and voluntary compliance remained central to the authority’s revenue performance.

She said the increase in STS collection reflected taxpayer confidence in KPRA and the impact of ongoing reforms.

KPRA said it would continue to broaden the tax base, strengthen compliance, improve digital services and facilitate taxpayers to support sustainable growth in provincial own-source revenue.