PESHAWAR: The Khyber Pakhtunkhwa government will collect over 83.2 percent of its revenue receipts for financial year 2015-16 from indirect taxes while the remaining 16.8 percent will be collected from direct taxes.
As per official documents for current financial year, the provincial revenue receipts are estimated at Rs 54.424 billion, that is comprising of a tax receipt of Rs 22.594 million (41.5 percent) including general sales tax on services of Khyber Pakhtunkhwa, which is Rs 14 billion and non-tax receipts of Rs 31.830 billion (58.5cpercent).
The provincial government has established the Khyber Pakhtunkhwa Revenue Authority (KPRA) for collection of sales tax on services and Infrastructure Development Cess (IDC). Since its establishment July 1, 2013, the authority has collected Rs 5.011 billion up to April 2015 on account of sales tax on services.
Collection of Infrastructure Development Cess (IDC) has not yet started as the issue of its collection requires resolution at federal level. Direct taxes of the province include taxes on agriculture income, property, land revenue, profession, trade and calling etc. The revised estimate of direct taxes for financial year 2014-15 is Rs 2.682 billion. The budget estimates 2015-16 is Rs 3.801 billion shows an increase of 64 percent over budget estimates of 2014-15.
Indirect taxes are a major component of tax receipts and comprise of provincial excise, GST on services, motor vehicle tax, stamp duties, cess of all types, electricity duty etc. The revised estimates for financial year 2014-15 from direct taxes was Rs 17.149 billion and budget estimates 2015-16 at Rs 18.793 billion, registering an increase of 9 percent over budget estimates 2014-15.
The finance department of the province has set realistic targets for year 2015-16, after careful objective consideration of the potential of the concerned department.
The provincial tax receipts collected since 2010-11 to 2015-16 showing an upward trend in growth rate. However, the economic development in the province remained under the shadow of poor law and order situation, which has adversely affected the revenue growth.
