KPRA collects Rs12.66bn in sales tax on services in Q1 FY27
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✧ GENERATE BRIEFING
The Khyber Pakhtunkhwa Revenue Authority (KPRA) registered a robust financial performance during the first quarter of fiscal year 2026–27, pulling in Rs12.66 billion in Sales Tax on Services (STS), which marks a striking 24% increase compared to the Rs10.21 billion collected during the corresponding period of the previous year. While the authority’s combined revenue stream—incorporating both STS and the Infrastructure Development Cess (IDC)—reached Rs13.123 billion (reflecting an overall net growth of roughly 5%), collections experienced significant divergence across sectors. Outstanding momentum in September, where monthly STS collections surged by 35% to hit Rs4.65 billion, successfully absorbed an 80% contraction in Infrastructure Development Cess (IDC) receipts. KPRA officials attributed the sharp IDC shortfall—which plummeted to just Rs457 million—directly to the prolonged closure of Pakistan-Afghanistan border crossings, which severely bottlenecked cross-border commerce and reduced cess yields by an estimated Rs1.785 billion.
The Khyber Pakhtunkhwa Revenue Authority (KPRA) collected Rs12.66 billion in Sales Tax on Services (STS) during the first quarter of fiscal year 2026-27, marking a 24% increase from Rs10.21 billion collected in the same period last year.
The authority’s combined collection from STS and Infrastructure Development Cess (IDC) reached Rs13.123 billion during July-September 2026, compared with Rs12.452 billion in the corresponding period of FY26, representing overall growth of around 5%.
STS collection showed particularly strong performance in September, reaching Rs4.65 billion, up 35% from the same month last year. The September figure accounted for more than one-third of the authority’s quarterly STS collection.
Border Disruptions and IDC Contraction
However, IDC receipts declined sharply during the quarter. KPRA collected Rs457 million under IDC, down 80% from Rs2.242 billion a year earlier.
Officials attributed the decline in IDC revenue mainly to the closure of Pakistan-Afghanistan border crossings, which disrupted cross-border trade and reduced collections from the cess. The resulting revenue shortfall under IDC was estimated at Rs1.785 billion during the first quarter.
The Rs2.456 billion increase in STS revenue more than offset the Rs1.785 billion decline in IDC receipts, allowing KPRA’s combined quarterly collection to remain above the previous year’s level.
Digital Expansion and Compliance
KPRA Director General Irum Naz credited the authority’s officers and officials for the stronger tax performance and thanked taxpayers for their cooperation and voluntary compliance.
The latest figures come as KPRA continues to expand digital tax services and efforts to broaden the provincial tax base. The authority has been using online registration, e-filing, e-payment and other technology-enabled services to improve taxpayer compliance and revenue collection.
