1QFY27: KPRA records 24pc increase in collection of STS YoY

PESHAWAR: Khyber Pakhtunkhwa Revenue Authority (KPRA) recorded a 24 percent growth in Sales Tax on Services (STS) collection during the first three months of the financial year 2026-27, collecting Rs12. 66 billion compared to Rs10. 2 billion during the corresponding period of the previous financial year. However, the collection of Infrastructure Development Cess (IDC) witnessed a substantial decline due to the closure of the Afghan border. According to statistics shared by the authority, the collection of Sales Tax on Services during July to September 2026 stood at Rs12. 666 billion, showing an increase of 24 percent compared to Rs10. 210 billion collected during the corresponding period of the previous financial year. During the same period, the collection of Infrastructure Development Cess (IDC) declined from Rs2. 242 billion last year to only Rs457 million, registering an 80 percent decrease. As a result, an additional Rs2. 456 billion was collected under Sales Tax on Services, while IDC collection declined by Rs1. 785 billion. The overall collection from STS and IDC during July to September 2025-26 stood at Rs12. 452 billion, which increased to Rs13. 123 billion during the first three months of the financial year 2026-27. Thus, an overall increase of 5 percent was recorded in the combined collection. In the month of September, the authority collected Rs4. 650 billion in head of Sales Tax on Services, registering a 35 percent increase compared to the same month last year. On the other hand, IDC collection in September declined by 82 percent to only Rs157 million. Due to the closure of the Afghan border, Khyber Pakhtunkhwa faced a cumulative revenue shortfall of Rs1. 785 billion under IDC during the first three months of the financial year 2026-27. Despite this decline, the increase in Sales Tax on Services collection enabled KPRA’s combined quarterly collection from Sales Tax on Services and Infrastructure Development Cess to remain 5 percent higher than the corresponding period of the previous year. Copyright Business Recorder, 2026

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