LAHORE:Punjab will establish a unified revenue authority on the model of Federal Board of Revenue (FBR) during next fiscal year, bringing all provincial taxes under a single institutional framework, Finance Minister Mujtaba Shuja-ur-Rehman announced on Wednesday.
He claimed the province successfully achieved 99 percent of its tax collection target during outgoing fiscal year, while revenue target for FY 2026–27 has been increased by 46 percent.Addressing a post-budget conference, the minister said enhanced target would also be achieved successfully.He said Punjab's own-source revenues are expected to increase by 30 to 40 percent.
He said govt has neither imposed any new taxes nor increased rates of existing taxes during the past two years. Instead, substantial improvements in revenue collection were achieved by eliminating corruption in tax administration and expanding provincial tax base.
He said PRA exceeded its assigned target by collecting 30 percent more revenue, while Excise and Taxation Dept recorded a 12 percent increase in collections. Among non-tax revenue-generating departments, Mines and Minerals Department emerged as leading contributor.
Collection target for Punjab Revenue Authority has been raised to Rs528 billion for the next fiscal year. The E&T Dept has been assigned a target of Rs124bn. Similarly, a target of Rs461bn has been proposed for non-tax depts. The minister said only a modest revision in certain existing tax rates has been proposed for upcoming fiscal year due to prevailing economic circumstances.
He said one of key reasons behind this adjustment was Punjab's decision to provide a Rs546 billion grant to federal govt, which effectively reduced province's development budget from Rs1.240 trillion to Rs752 billion.
Responding to media queries, finance minister observed taxes whose rates have been revised for upcoming fiscal year had remained unchanged for several decades. He pointed out proposed amendments to Agricultural Tax, which has remained unchanged since 1998, will apply only to landholdings exceeding 12.5 acres. The minister said the property tax regime is being fully digitised to eliminate corruption and improve efficiency. Opening the press conference, Punjab Senior Minister Marriyum Aurangzeb said Budget 2026–27 has been designed to promote economic transformation, industrial growth, agriculture, youth development, and environmental sustainability despite fiscal constraints.
She said Punjab's Annual Development Programme (ADP) stands at Rs752 billion, while current expenditures have been reduced to Rs1.96 trillion, which is 3.2pc lower than the outgoing fiscal year. No cuts had been made to social sector spending, she added. She said Punjab Economic Transformation Plan, with a total size of Rs1.9 trillion over three years, is the budget's flagship initiative. She announced Rs5.4 billion programme for introducing 1,100 electric taxis and reaffirmed government's commitment to deploying 2,000 green buses across the province.
Punjab Minister for Information and Culture Azma Bokhari has said that the Punjab government has achieved a new milestone by presenting its third surplus budget, reflecting the province’s strong fiscal discipline, sound planning, and effective governance.
In a statement, she said the current budget places special emphasis on education, healthcare, and the social sector to ensure the provision of essential public services at the doorstep of citizens.
