PESHAWAR: The Khyber Pakhtunkhwa government has adopted a coherent policy to mutually take up tax-related issues with the Federal Board of Revenue and other relevant bodies in order to broaden the existing tax base in the province.
Speaking at a news conference at the press club, Khyber Pakhtunkhwa Revenue Authority (KPRA) Director General Mohammad Tahir Orakzai said that an effective forum comprising all revenue authorities across the country had been constituted to establish a better coordination and share information, essentially to raise certain issues relating to tax collection, with the FBR and other central bodies.
He said some litigation cases were hampering expansion of existing tax net in the province. He maintained that the authority was dependent on inland tribunal services of FBR to resolve the cases speedily. So, he said an effective coordination system was established between KPRA and FBR’s regional office here.
Mr Orakzai said the authority had successfully achieved its revenue target during last fiscal year, adding an ambitious target of Rs13.623 billion had been set in the current financial year, which would be achieved.
He claimed that the KPRA had generated Rs10.27 billion during last financial year against the target of Rs10 billion. He said the authority was taking all possible measures to provide best facilitation services to taxpayers.
The official said KPRA was mandated to collect sales tax (ST) on more than 93 services, adding the telecommunication sector topped in tax collection by 53 per cent, followed by oil and gas 11 per cent, withholding agents, banks and contractors by 6 per cent.
He said efforts were being made to widen the tax base under voluntarily compliance strategy. He viewed that KP had the potential to generate Rs30 to Rs40 billion revenue annually. He especially mentioned that a study was conducted in Peshawar and Abbottabad, which had brought out an encouraging figure.
