KPRA Collects Rs13.123bn From Sales Tax on Services & IDC in First Quarter of FY 2026-27
Peshawar, (APP - UrduPoint / Pakistan Point News - 2nd Oct, 2026)
Advisor to KP CM on Finance, Muzzammil Aslam, has stated that the Khyber Pakhtunkhwa Revenue Authority (KPRA) witnessed a remarkable surge in Sales Tax on Services (STS) collections during the initial quarter (July to September) of the financial year 2026-27. However, the collection of Infrastructure Development Cess (IDC) experienced a significant drop due to the closure of the Afghan border.
Aslam revealed that from July to September 2026, STS collections stood at Rs12.666 billion, marking a 24% increase compared to Rs10.210 billion collected during the corresponding period last year. Conversely, IDC collections declined from Rs2.242 billion to merely Rs457 million, a staggering 80% decrease.
Consequently, an extra Rs2.456 billion was garnered from STS, while IDC collections dipped by Rs1.785 billion.
He highlighted that overall, STS and IDC collections during July to September 2025-26 totaled Rs12.452 billion, rising to Rs13.123 billion in the first three months of the current fiscal year. This translates to a 5% overall increase in combined collections.
Aslam provided details regarding September collections, noting that STS collections reached a notable Rs4.650 billion, a 35% jump from the same month last year. In contrast, IDC collections plummeted by 82% to Rs157 million.
The figures indicate that Khyber Pakhtunkhwa faced a revenue shortfall of Rs1.785 billion under IDC during the first quarter of 2026-27 due to the border closure. Despite this, the increased STS collections ensured that KPRA's combined quarterly collection from STS and IDC remained 5% higher than the previous year's corresponding period.