Revenue Collection
PESHAWAR: Khyber Pakhtunkhwa (KP) has marked a significant achievement by recording a 41% increase in revenue collection for the first nine months of the financial year 2024-25, compared to the same period in the previous year.
The Khyber Pakhtunkhwa Revenue Authority (KPRA) successfully collected Rs 37.37 billion in revenue, showing a remarkable rise of Rs 10.79 billion over last year’s collection of Rs 26.58 billion. This substantial growth highlights the province’s continued efforts to improve its financial management and boost its own-source revenues.
The KPRA’s revenue includes Rs 28.8 billion collected from sales tax on services and Rs 8.57 billion from the Infrastructure Development Cess (IDC). When compared to last year’s figures, sales tax on services saw a growth of 26%, as it stood at Rs 22.8 billion in the previous year.
Similarly, the IDC collections have surged by an impressive 129%, from Rs 3.74 billion last year to the current Rs 8.57 billion. This increase reflects not only the expansion of services but also the efficiency of the revenue collection mechanisms in the province.
The KPRA has set a target of Rs 47 billion for the current fiscal year, further showcasing its ambitious goals to sustain and increase its revenue streams. This growth is a clear indication of the province’s determination to enhance its financial independence and reduce reliance on federal transfers.
In a related development, KP’s Chief Minister, Ali Amin Gandapur, addressed the issue of the merger of tribal districts into Khyber Pakhtunkhwa in 2018 following the 25th Amendment.
He pointed out that the integration of these areas, which added 5.7 million people to the province’s population, has yet to result in a fair distribution of resources under the National Finance Commission (NFC) award.
Gandapur noted that despite the significant population increase, the federal government continues to receive funds allocated for the former tribal areas, rather than the provincial government. He argued that this situation is unconstitutional and undermines promises made to the tribal regions, which affects the province’s development, peace, and stability.
In his letter to President Asif Ali Zardari, CM Gandapur urged the convening of an NFC meeting to address these issues, as KP remains entitled to a fair share of the NFC award to support its growing population and development needs.
The letter highlighted the constitutional violation of withholding funds due to KP and emphasized the urgent need for a resolution to ensure equitable financial distribution.
