Punjab Finance Minister Mian Mujtaba Shujaur Rehman has said that the province is looking to establish a unified revenue authority on the model of the Federal Board of Revenue (FBR), bringing all provincial taxes under a single institutional framework from the next fiscal year.
Addressing a post-budget press conference, Rehman said that the province achieved 99 percent of its tax collection target in the outgoing fiscal year. The revenue target for FY 2026-27 has been raised by 46 percent, and own-source revenues are expected to grow by 30 to 40 percent.
He said that improvements in revenue collection were driven by curbing corruption in tax administration and expanding the provincial tax base. The Punjab Revenue Authority exceeded its target by collecting 30 percent more revenue this fiscal year, while the Excise and Taxation Department recorded a 12 percent increase.
For the next fiscal year, the Punjab Revenue Authority (PRA) has been assigned a collection target of Rs528 billion, the Excise and Taxation Department Rs124 billion and non-tax departments Rs461 billion.
Rehman added that Punjab granted Rs546 billion to the federal government, which brought the province’s development budget down from Rs1,240 billion to Rs752 billion. However, he added, no compromise was made on development or public services despite the reduction.
The minister also confirmed that the agricultural tax unchanged since 1998 will be revised, but only for landholdings exceeding 12.5 acres.
