LAHORE: The Punjab Revenue Authority (PRA) recorded a significant 33% year-on-year increase in sales tax collection on services in March 2026, reflecting improved enforcement measures and expansion of the taxpayer base.
According to an official statement issued on Friday, the authority collected over Rs30 billion during March of fiscal year 2025–26, compared to Rs22.4 billion in the same month last year, highlighting strong growth momentum.
Cumulative collections for the first nine months (July–March) of FY2025–26 exceeded Rs250 billion, up from Rs181 billion in the corresponding period of the previous fiscal year. The increase of nearly Rs70 billion underscores sustained revenue mobilisation efforts across Punjab.
The PRA attributed this upward trend to administrative reforms, enhanced monitoring systems, and stricter compliance measures within the services sector. Officials noted that these steps have significantly improved tax reporting and reduced leakages.
The activation of the Large Taxpayer Unit (LTU) has also started delivering positive results, contributing to better documentation and broadening of the tax base.
PRA Chairman Moazzam Iqbal Sipra has directed field formations to intensify enforcement efforts to ensure achievement of annual revenue targets. The authority has also accelerated action against non-compliant service providers to strengthen compliance.
Officials added that the PRA is increasingly relying on digital monitoring tools and data integration to curb tax evasion and enhance transparency in the system.
The authority reiterated that the services sector remains a key pillar of provincial revenue and expressed optimism that collections will continue to grow in the remaining months of the fiscal year as compliance measures gain full traction.
PRA reaffirmed its commitment to building a fair, transparent, and predictable tax environment for businesses operating across Punjab.
