Governor KP briefed on tax collection, growth

PESHAWAR, Mar 17 (APP): Governor Khyber Pakhtunkhwa (KP) Faisal Karim Kundi on Tuesday briefed by officials of the Regional Tax Office (RTO) Peshawar on tax collection, performance of zonal offices and revenue targets during a meeting held at Governor House Peshawar.

Chief Commissioner RTO Peshawar Muhammad Taqi Qureshi gave a detailed presentation to the Governor on overall tax collection, growth trends and performance of various tax zones across the province. Principal Secretary to Governor, Zubair Arshad, was also present on the occasion.

During the briefing, it was informed that the tax collection system in Khyber Pakhtunkhwa comprises seven zones, including Taxpayer Zone, Corporate Zone, Withholding Zone, Mardan, Peshawar, Dera Ismail Khan and Refund Zone.

The Governor was told that the province generated approximately Rs 247 billion in tax revenue during the fiscal year 2024-25.

Officials further apprised that during the fiscal year 2025-26, sales tax has recorded a growth of 27 percent, while income tax has grown by 9 percent, with an overall tax growth of 16 percent so far. It was expressed confidence that the province would achieve the International Monetary Fund (IMF) target of 19 percent growth by the end of the current fiscal year.

The Governor was also informed that under Section 40-D, sales tax is being applied on locally manufactured products in the erstwhile FATA/PATA regions as well as on their supply at local and non-local levels.

Speaking on the occasion, the Governor appreciated the efforts of RTO Peshawar in enhancing tax collection in line with IMF targets and emphasized the need to make the tax system more transparent and efficient. He said that improving the tax system and increasing revenue are vital for the province’s development.

He also stressed the importance of further improving tax recovery, promoting digital tax filing and strengthening engagement with the business community to broaden the tax base.