The provincial government of Khyber Pakhtunkhwa will collect an estimated amount of Rs 53.4 billion in head of tax and non-tax receipts during financial year 2019-20, said White Paper on KP Budget. The provincial government in head of tax receipt will collect Rs 33 billion (62%) including Sales Tax on Services, which is Rs 20.3 billion while Non-Tax Receipt is estimated at Rs 20.3 billion (38%).
Direct taxes include taxes on Agriculture Income/Land, Urban Immovable Property (UIP) Tax, Tax on Transfer of Property Registration, Land Revenue & Profession, Trade and Callings etc. The revised estimates of direct taxes during 2018-19 was Rs 4.7 billion while the budget estimates 2019-20 is Rs 9.9 billion. The provincial tax receipts collected since 2016-17 to 2018-19 and to be collected during 2019-20 show upward trend despite the fact economy was severely hit by war on terror and week tax base.
The provincial government receipt in head of electricity duty that is collected by Pepco. The duty is usually adjusted by Pepco against the receivable of electricity dues of the provincial government Department/Local Bodies, Rs 0.47billion has been adjusted at source by Pepco during 2017-18, when an amount of Rs 1.7 billion (until March 2019) was still outstanding against Pepco.
Indirect Taxes, a major component of tax receipts comprises of Sales Tax on Services, Provincial Excise, Motor Vehicle Tax, Stamp Duties, Cess of all types and Electricity Duty etc. The revised estimates for financial year 2018-19 from indirect taxes was Rs 15.8 billion while the budget estimates for 2019-20 is Rs 26 billion registering an increase of 164%.
The Provincial Non-Tax Receipts for the financial year 2019-20 are estimated at Rs 20.4 billion. The receipts consist of major heads such as Income from Property and Enterprises, Receipts from Civil Administration, Community Services, Social Services and Economic Services. The Property & Enterprises consist of interest, dividends and profit of Own Hydel Projects generation. The Malakand III, Pehur & Shishi Power Station Projects have been commissioned, whereas the power station ie. Ranolia, Machai and Daral Khuwar will start functioning during 2019-20 and Rs 5.6 billion has been earmarked for them in financial year 2019-20.
The civil administration includes receipts from Home & Tribal Affairs Department, Law & Order, General Administration of Justice, Receipts from civil administration for financial year 2019-20 as Rs 3.4 billion that is an increase of 2.6% over budget 2018-19. A major chunk of this revenue consists of income coming from Law and Order, Police, Private Security Companies. The revised estimates for 2018-19 were estimated with a decrease of 10.7% over the original estimates due to non-realization of actual recovery.
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