Investor Presentaiton
Chapter II - Estimates of Receipts
Punjab Revenue Authority (PRA)
PRA was assigned a revenue collection target of PKR 166.550 billion for FY 2019-20. The target was based on
the revenue collection trends of the preceding years, the revenue generation potential of the assigned taxes and
tax policy measures taken by the Government. However, due to overall impact of COVID-19 on the service
sector and the reduction of PSTS on 20 plus sectors from 16% to 0% for the last quarter of FY19-20 under the
Tax Relief Package the R.E for FY19-20 has been set at PKR 105 billion. This amount also includes
the transfer of PKR 4.288 billion claim pending with the Federal Government regarding wrong transfer
of PRA funds to FBR by NBP.
Services such as Telecommunications, Banking/ Insurance, Contractual Execution, etc. were expected to be the
primary revenue spinners for PRA during the financial year and have also generated the highest revenue
amongst different sectors as shown below. The following table shows the Revised Estimates of collection from
major Services during the year:
&
PKR 125.0
bn
-25%
decrease
over Budget
Estimates of
FY 2019-20
Sales Tax on Service Collection 2019-20
(PKR Billion)
Service
Telecommunication
Withholding Agents
Banking/Non-Banking/ Insurance
Franchise services
Contractual execution of work or furnishing supplies.
Courier services
Revised Estimates of Collection
23.0
18.0
13.5
7.0
4.0
2.8
Manpower recruitment agents including labour and manpower supplies.
2.7
Restaurants including cafes, food (including ice-cream) parlors, coffee houses, coffee shops, deras, food
huts, eateries, resorts and similar cooked, prepared or ready-to-eat food service outlets etc.
Construction services
2.6
2.4
Security Agency
2.1
Information Technology-enabled or Information Technology-based services
2.0
Services in relation to transport of goods other than water, through pipeline, conduit or any other medium
Other Services
1.8
15.64
Transfer from FBR (previous wrong credit)
4.28
PIDC
3.18
Total Revised Estimate of Collection
105.0
PRA has done exceedingly well to maintain very high growth in revenue collection over the past 4-5 years. Based on the revenue trends, PRA
has been assigned a target of PKR 125.000 billion for FY 2020-21 with a decrease of 25% over Budget Estimates of FY 2019-20. The Government
has reduced the PSTS for nine sectors from 16 to 5% to incentivize compliance. Furthermore, the Government of Punjab has consented to a
Memorandum of Agreement (MOA) with the Federal Government geared towards 'Harmonization of Sales Tax' across the country. This
MOA has come in the wake of the creation of a National Tax Council under the FCC by the Federal Government.
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