MUZAFFARABAD (Kashmir English): The Inland Revenue Department of Azad Jammu and Kashmir (AJK) has claimed to collect over Rs60 billion in revenue by May 2025, with a target of around Rs70 billion by the end of the fiscal year 2024-25.
In a statement issued on Friday, the tax collecting body confirmed that its South Zone has contributed Rs49 billion alone by May and expressed hope of collecting more than Rs55 billion by the end of the year.
The revenue target for the current fiscal year was Rs75.7 billion, a significant increase from the previous year.
The revenue department said it has made notable achievements in revenue collection this year, despite facing several challenges, including a reduction in the electricity tariff, which resulted in a decrease of Rs 2 to 3 billion in tax revenue.
Furthermore, it said that the department collected Rs 1.5 billion less in revenue from the tobacco sector due to litigation and tax avoidance schemes by cigarette manufacturing companies.
“The department collected Rs 502 million from the tobacco sector in the current fiscal year, compared to Rs 1308 million in the fiscal year 2023-2024.” The department took coercive action against several sectors, including oil and ghee, tea, and food units.
It further added that the department has successfully implemented the latest AJK POS Invoicing System, nine months ahead of schedule, without any advance payment or expenses. This system is expected to increase revenue collection by 400% to 800% from registered taxpayers, it said.
Moreover, the revenue department maintained that an agreement was signed with the Punjab Information Technology Board to establish a centralized motor vehicles registration system, enabling the public to register vehicles and pay taxes online.
“A Memorandum of Understanding (MoU) has been signed between the Federal Board of Revenue (FBR) and the Central Board of Revenue (CBR) of Azad Jammu and Kashmir, allowing for data integration and resolving the issue of double taxation for businesses operating in both regions,” the statement read.
In addition to that, IRD stated that the department is implementing the latest Track & Trace System in the tobacco sector, following several meetings and discussions with senior officials of the proposed license holder, AJCL Authentix Mitas.
