Punjab’s Finance Minister, Mujtaba Shujaur Rehman, highlights the pressing need to document the economy. He states that the provincial government will make changes to the Punjab Sales Tax Act to make its revenue authority more effective.
Additionally, the government plans to update tax rates set by the Board of Revenue, which have remained unchanged for 15 to 20 years.
The administration aims to promote the use of plastic cards, like debit and credit cards, for tax payments to the government.
They believe that sharing data with the Federal Board of Revenue (FBR) will help expand the tax base and increase revenue collection.
During the second meeting of the Ministers’ Committee for Resource Mobilisation 2024-25, held at the Finance Department, the provincial minister instructed tax departments to devise a formula for adjusting tax rates periodically.
The meeting reviewed proposals from the Board of Revenue and the Punjab Revenue Authority (PRA) to maximize the use of the province’s own resources.
The additional secretary of finance reported that revenue collection by the Excise and Taxation Department and the PRA has been steadily increasing. However, the Board of Revenue has been struggling to meet its targets despite concerted efforts.
My Opinion:
In my opinion, these proposed reforms seem crucial for Punjab’s economic growth. Updating tax laws and encouraging digital payments could streamline processes and potentially boost revenue. Collaboration with federal authorities also appears promising for broadening the tax base. However, effective implementation will be key to realizing the intended benefits.
