LAHORE: Punjab Revenue Authority (PRA) collected Rs.73.7 billion from Julyto December 2020 registering a phenomenal growth of 41.6 per cent over theRs.52.1 billion collected in the first half of the previous financial year,the PRA spokesperson said this here on Friday.

This performance, she added, was all the more remarkable in view of theunprecedented tax relief package given by Punjab Government through theFinance Act, 2020 wherein the rate of Punjab Sales Tax on Services on morethan 25 services was reduced to support COVID-19 affected sectors, boostcompliance and encourage documentation.

Punjab government reduced the rate of PSTS (Provincial Sales Tax onServices) from 16 per cent to 5 per cent for various sectors that wereaffected by the outbreak of the COVID-19 pandemic including marriage hallsand lawns, small hotels, caterers, tour operators, rent-a-car services,photographers, gyms and manpower recruitment services.

In addition, the rate of PSTS on health insurance, medical consultancy andhospital charges was reduced to zero per cent to cut the cost of healthcarefor the public, she maintained.

PRA spokesperson added that government also reduced the rate of sales taxon restaurant and beauty parlor services from 16 per cent to 5 per cent incase of payment through credit or debit cards. This widely appreciatedmove, she said, was aimed at promoting documentation of the economy and hadstarted to pay dividends as the proportion of customers using cards forpayment was on the rise.

The government also gave major tax relief to sectors considered crucial foreconomic growth. Rate of sales tax was reduced on property builders anddevelopers from 16 to 5 per cent i.e Rs.100/sq. yard and Rs.50/ sq. ft. forland developers and builders respectively. The rate was also reduced to 5per cent for information technology services to encourage e-commerce and to4 per cent for ride hailing services.

PRA’s performance is the outcome of its policy of minimum humaninteraction, reliance on Information Technology and creating a culture ofcooperation and collaboration with all stakeholders.

PRA is by far the most automated organization in the Punjab as itsregistration, return-filing and tax payment processes are completelyautomated.

It was the first Provincial Revenue Authority to implement Sales TaxReal-time Invoice Verification (STRIVe) system and is the only ProvincialRevenue Authority to have implemented Electronic Invoice Monitoring System(e-IMS). These two systems combined to enable pre-population of returnspromoting ease of doing business as well as minimizing tax fraud, sheelaborated.

During the first two quarters of the current financial year, PRA did notresort to any coercive measures for tax collection such as sealing businesspremises or attachment of bank account. Instead, following the government’spolicy of stakeholder involvement, PRA relied on taxpayer facilitation andeducation.

In addition to meetings with various bars, chambers and associations, PRAuploaded guides on tax processes on its websites, established facilitationdesks in PRA office in Lahore as well as Lahore Chamber of Commerce andIndustry and conducted more than fifty workshops for taxpayers.

In order to further facilitate taxpayers, PRA launched TelPRA, anandroid-based mobile application that allows taxpayers to post feedback,suggestions, complaints and queries that are responded to by the PRAworkforce.

The above steps and policies, she said, had yielded very positive responsein the shape of unprecedented revenue growth. PRA’s percentage growth forthe first half of the financial year (41.5 per cent) far surpassed allother revenue authorities in the country including FBR (4.9 per cent),Sindh Revenue Board (15.9p per cent), KPK Revenue Authority and BalochistanRevenue Authority, she claimed.

Meanwhile, Punjab Finance Minister Makhdoom Hashim Jawan Bakht praised theperformance of PRA. “Generating Own Source Revenue for the province hasbeen and will remain a top priority of Punjab government,” he added

While, the PRA Chairperson attributed all credit for the performance to histeam and the immense support from the Finance Minister Punjab. He said thathe was confident that the PRA team would continue to work hard and achievethe assigned revenue target for the Financial Year 2020-21.