The Khyber Pakhtunkhwa Revenue Authority (KPRA) recorded a strong 20% increase in Sales Tax on Services (STS) collection during the fiscal year 2025-26, exceeding its annual revenue target through improved tax administration, enhanced enforcement, and better taxpayer facilitation.
According to KPRA, the authority collected Rs48.71 billion in Sales Tax on Services during FY2025-26, compared to Rs40.60 billion in the previous fiscal year, reflecting an increase of Rs8.11 billion. The collection also surpassed the assigned STS target of Rs45.5 billion, highlighting the authority’s improved revenue performance.
Overall, KPRA generated total revenue of Rs53.7 billion during the fiscal year, representing approximately 20% growth compared to the previous year’s collection.
The authority also collected Rs5 billion under the Infrastructure Development Cess (IDC). However, IDC receipts declined during the year, primarily due to the closure of Pakistan-Afghanistan border crossings, which affected cess collections.
KPRA attributed the strong growth in Sales Tax on Services to sector-wise improvements in tax collection, supported by strengthened compliance measures, effective enforcement, digital reforms, and enhanced taxpayer services.
Director General KPRA, Miss Irum Naz, congratulated the authority’s officers and officials for achieving the revenue targets across both the headquarters and regional offices. She expressed confidence that KPRA would continue its positive momentum and successfully achieve future revenue goals through the same strategy and commitment.
She also acknowledged the support of the Khyber Pakhtunkhwa government, including Chief Minister Muhammad Sohail Afridi, Finance Advisor Muzzammil Aslam, and Finance Secretary Capt. Kamran Ahmad Afridi (Retd.), for their guidance in strengthening the authority’s institutional reforms and revenue collection efforts.
The DG further thanked taxpayers for their continued trust and voluntary compliance, stating that public cooperation remains the foundation of KPRA’s success.
She emphasized that the significant growth in Sales Tax on Services demonstrates increasing taxpayer confidence in KPRA’s reforms. Going forward, the authority plans to further expand the provincial tax base, improve compliance, strengthen digital tax services, and provide greater facilitation to taxpayers to ensure sustainable growth in Khyber Pakhtunkhwa’s own-source revenues.
