1QFY27: KPRA records 24pc increase in collection of STS YoY
PESHAWAR: Khyber Pakhtunkhwa Revenue Authority (KPRA) recorded a 24 percent growth in Sales Tax on Services (STS) collection during the first three months of the financial year 2026-27, collecting Rs12.66 billion compared to Rs10.2 billion during the corresponding period of the previous financial year. However, the collection of Infrastructure Development Cess (IDC) witnessed a substantial…
In the first quarter of the fiscal year 2026-27, the Khyber Pakhtunkhwa Revenue Authority (KPRA) experienced a 24% surge in Sales Tax on Services (STS) collection, amassing Rs12.66 billion compared to Rs10.2 billion in the same period last year. However, the collection of Infrastructure Development Cess (IDC) saw a significant drop due to the closure of the Afghan border.
The IDC collection plummeted from Rs2.242 billion in the previous fiscal year to just Rs457 million during July to September 2026, reflecting an 80% decrease. Consequently, KPRA managed to collect an additional Rs2.456 billion under STS while IDC collection fell by Rs1.785 billion. The overall STS and IDC collection during this period increased from Rs12.452 billion to Rs13.123 billion, marking a 5% rise.
September proved to be a standout month for STS, with KPRA collecting Rs4.650 billion, a 35% increase compared to September last year. Conversely, IDC collection in the same month declined by 82%, amounting to only Rs157 million. Due to the Afghan border closure, Khyber Pakhtunkhwa faced a combined revenue gap of Rs1.785 billion under IDC for the first quarter of the fiscal year 2026-27.
Despite this decline, the heightened STS collection allowed KPRA's combined quarterly collection from STS and IDC to remain 5% higher than the previous year.
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