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KP Advisor Finance Himatullah Khan Stresses Increase in Tax Base

He stated that by adding more sectors to the tax net, the government can reduce tax rates without compromising revenue collection.

by TNN Editor - 13 Jul, 2023 1507
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PESHAWAR: Himatullah Khan, the Advisor to the Caretaker Chief Minister of Khyber Pakhtunkhwa on Finance, Energy, and Power, visited the Khyber Pakhtunkhwa Revenue Authority (KPRA) office on Wednesday.

He was accompanied by Muhammad Ayaz, the Secretary of Finance of Khyber Pakhtunkhwa. Shah Mahmood Khan, the Director General of KPRA, provided them with a detailed presentation on the structure, functioning, and revenue achievements of KPRA, along with proposed plans for the future.

The DG of KPRA informed them that KPRA contributed 71 percent of Khyber Pakhtunkhwa's own source tax revenue in the financial year 2022-23. Furthermore, the revenue collection of KPRA has increased by 180 percent since 2017, highlighting the performance and dedication of the KPRA team.

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The Director General also briefed the Advisor on Finance, Energy, and Power about the pending amounts owed to KPRA by FBR, NTDC, and PESCO, which require the efforts of the KP government to release the outstanding payments.

According to the DG of KPRA, the Federal Board of Revenue (FBR) has paid Rs8 billion to KPRA so far, as per the MoU signed between KPRA and FBR for cross-input adjustment. However, a total of Rs10 billion is still pending with FBR. The Advisor on Finance, Energy, and Power assured that the government will address the issue of pending amounts with the Federal Government.

During the presentation, the DG of KPRA highlighted that the organization has expanded its tax base and brought new sectors related to services business under the tax net. In the past, 93 percent of the tax was collected from the telecom sector, but now it has decreased to 35 percent due to the KPRA team's efforts in exploring other sectors.

Speaking at the event, Advisor Himatullah Khan praised the efforts of the KPRA team and emphasized the need to broaden the tax base by including new sectors for tax collection. He stated that by adding more sectors to the tax net, the government can reduce tax rates without compromising revenue collection.

Khan acknowledged KPRA's significant role in generating revenue for the province, which is utilized for public welfare programs and the betterment of the people. He urged the KPRA team to identify growth potential in sectors that do not burden the poor population of the province. He mentioned the oil and gas exploration sector, infrastructure development cess, and security services as potential areas for increased revenue collection.