PESHAWAR: The Khyber Pakhtunkhwa Revenue Authority (KPRA) is successfully operating the Restaurant Invoice Monitoring System (RIMS) and installed the software in 114 restaurants as of the end of last fiscal year, the 2020-21 annual report of the PESHAWAR said. authority.
The system allows KPRA to access real-time restaurant sales and tax collection data, ensuring full transparency of tax collected by restaurants from consumers.
The system also allows taxpayers to check their bills through the KPRA websites to ensure that the tax they pay at a restaurant has been duly filed with the authority. KPRA, as part of restaurant incentives, has reduced the tax rate from 8% to 5% in all non-professional restaurants where RIMS has already been installed, which benefits both restaurants and consumers.
The report states that the authority’s adjudicating officers, in the year 2020-2021, passed 214 assessment orders and imposed penalties in 4,016 non/late filer cases creating a tax claim of $6,826 million. rupees.
Of 214 assessment orders made during the year, taxpayers appealed in 111 cases to the tax collector (appeals). Considering that, against the 4016 penalty orders for late non-declaration, the taxpayers filed 287 appeals with Collector Appeals.
Collector Appeals is an independent appeals forum within the authority and is mandated under Section 81 of the Act to make such order as it sees fit, confirming, amending, amending, setting aside or setting aside the decision or order under appeal. 398 taxpayers harmed by the order issued by the administration authorizing officers filed an appeal with the Receiver of Appeals during the 2020-21 financial year. In addition, seven appeals have been filed since the previous year. 371 appeals were decided during the reporting period. 34 appeals were pending as of June 30, 2021.
The KPRA was established under the KP Finance Act 2013, as a body corporate, with the mandate to collect and administer sales tax on services provided, supplied rendered, initiated, created, performed , received, delivered or consumed in the province of Khyber Pakhtunkhwa. The collection of Cess for infrastructure development (IDC) was entrusted to KPRA in 2019-20.
The Policy Development Council in the supreme forum of authority composed of seven members with the Chief Minister of KP as Chairman while the Chief Executive Officer (CEO) KPRA assumes the responsibility of Secretary.
Members are the Ministers of Finance, Law, Parliamentary Affairs and Excise and Taxation. The other members are the Chief Secretary, the Finance Secretary, the Legal and Parliamentary Affairs Secretary, the ET&NC Secretary and four government appointed representatives from the private sector.
The council is the policy-making body of the authority and formulates policy directions relating to tax administration, planning, reforms, budget and any other matters referred to it by the government. The policies formulated by the board are binding on the authority.
In the 2020-21 financial year, the authority collected Rs 20.8 billion, achieving a 22% growth from the 2019-20 financial year.
The reforms introduced by the provincial government to improve the province’s own revenues are yielding fruitful results. The establishment of regional offices in Mardan, Abbottabad and Bannu, followed by the introduction of reduced service sales tax rates on over 20 taxable services, and the implementation of the Withholding Tax Regulations, 2020, contributed to phenomenal growth in sales tax collection despite the negative impact. of Covid-19.
Tax collection from the construction and contract enforcement sector remained at Rs 2.5 billion for the financial year 2020-21. Despite a reduced tax rate, tax collection in fiscal year 2020-21 from this sector remained at the same level as the previous year.
Similarly, the collection of transport service taxes also showed an impressive growth of 46%. In terms of revenue contribution, an additional sum of Rs 270 million was collected during the 2020-21 financial year from this sector.
The collection of taxes from the oil and gas sector is mainly based on the activities carried out in the oil fields located in the province. Compared to the 2019-2020 fiscal year, a significant decline was observed in revenue collection in the 2020-21 fiscal year. The main reason for the decline was that the major E&P companies limited their activities mainly due to the unavailability of multinational companies due to the impact of Covid-19. Despite less activity, the KPRA was able to collect a sum of Rs 1.2 billion from this sector.
Tax revenue from sectors such as hospitality and labor supply services showed a decline in FY 2020-21 compared to FY 2019-20, mainly due to the effects adverse effects of Covid-19 restrictions.
Copyright Business Recorder, 2022