Business
PRA to launch PSTS return system
During FY-2023-24, the PRA collected over PKR 240 billion
Lahore: The Punjab Revenue Authority (PRA) is set to introduce a new Punjab Sales Tax on Services (PSTS) return system, marking a significant step towards an integrated, automated, and paperless tax process.
Established in 2012, the PRA is a premier tax collecting department, contributing over 66% of Punjab's own-source revenue.
In the fiscal year 2023-24, the PRA collected over PKR 240 billion, which includes PKR 224.4 billion from PSTS, PKR 5.4 billion from the Punjab Infrastructure Development Cess, and PKR 10.2 billion from the Punjab Workers’ Welfare Fund.
The PRA began with a modest collection of PKR 33.9 billion in the fiscal year 2012-13 and has since achieved a 561% growth in PSTS.
The organization's success is attributed to its effective use of information technology, which is essential for a modern revenue-collecting agency.
PRA, after implementing Single Sales Tax Return (SSTR) for businesses operating at cross provincial level is all set to launch its new sales tax module for the businesses providing services only within the territory of Punjab under the directions of Finance Minister Punjab, Mujataba Shuja ur Rehman.
The said return will be launched in August 2024 and taxpayers will file their sales tax returns for tax period July 2024 onwards through the new system.
PRA declares the launching of its new return a giant leap in achieving the goal of having end to end automated tax solution.
The new return envisages all calculations, checks, validations and verifications under the provisions of Punjab Sales Tax on Services Act, 2012 thus mitigating any chances of loss of revenue.
The system is web based and e-interactive and will be able to achieve paperless environment.
The system will also cater to the needs of tax officers to issue e-notices on account of non-filing, approvals on account of extension and revision of sales tax returns.
The taxpayers, besides e-filing of their tax returns, will also be able to file online applications for extension, return revision along with scanned copies of relevant documents which will save the taxpayers from visiting PRA offices. Prior to implementation of Return module, thorough User Acceptance Testing (UAT) by PRA Domain Team as well as by stakeholders has been undertaken and PRA plans to conduct provincewide workshops for training and education of taxpayers and other stakeholders.
User guides will also be available at PRA website for the facilitation of taxpayers.
After the implementation of return module, PRA is on its way to develop Assessment module through which the officers will be able to make correct assessments of value of services and sales tax thereon through audit or otherwise after sending online notices.