Minister for Finance Message
Mr. Taimur Khan Jhagra
Minister for Finance KP
It gives me a great pleasure to read the Annual Report of KPRA for 2019 – 20. The year 2019 – 2 saw a paradigm shift in the tax policy domain of KPRA. Tax policy was mad inclusive by taking almost all the relevant business associations on board. Bold reforms were initiated for the rationalization of KP sales tax rates on service generally provided by small and medium enterprises. Tax rates were reduced on twenty-nine categories of services to stimulate voluntary compliance especially in regimes where tax enforcement has remained a problem due to multifarious socio-cultural factors. Tax rate rationalization scheme of KPRA worked so well that historic growth was recorded during 2019 – 20 despite huge revenue dip or shortage resulting from a long span lock down and market closures of COVID19. It goes without saying that despite limited resources, KPRA tried to achieve ends. The year 2019 – 20 is a landmark year in the history of KPRA. It happened first time that a transparent performance-based incentive system (PBIS) was introduced with measurable key performance indicators (KPIs) for each important activity. The financial compensation of KPRA’s manpower was linked with the achievement of the KPIs. A system was put in place whereunder progress on each of the KPIs was regularly monitored and reviewed on monthly basis.
National economies in the world are recovering from the trauma of COVID19. Pakistan is not exception to it. But fortunately, Pakistan is primarily a resilient society it has immense tolerance an endurance. Its economy is recovering faster than many other comparable sate economies. Hard time is however, not over yet. During economic recovery periods, the challenges of tax administrations increased manifold. It is very heartening to learn that KPRAhas readjusted its over all tax administration strategy characterized with intensive taxpayers’ persuasive facilitation, declaration-based monitoring, soft enforcement measures, focused parametric tax audit, efficient settlement of tax disputes and consistent liaison with the trade bodies using their platform to motivate the businesses toward conformity of KPsales ta obligations. KPRA deserves full acknowledgement and appreciation for its achievements and forwarded looking efforts to entrench widespread proliferation of services’ sales tax system in the province on sustainable visionary lines. My heartiest felicitations to KPRA.