SRB to achieve Rs120bn collection target during 2018-19: CM Sindh
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KARACHI: Sindh Chief Minister Syed Murad Ali Shah said that no new tax was imposed or enhanced during 2018-19 just to provide a space to the businesses in tight economic conditions, despite the fact the Sindh Revenue Board (SRB) was going to achieve its revenue collection target during 2018-19.
This he said while talking to Chairman Sindh Revenue Board (SRB) Khalid Mahmood who presented him annual report of 2017-18, said a statement on Monday.
The report says that 2017-18 has been significant in several respects.
The SRB met the target of Rs100 billion, posting an increase of 27 percent year on year. This include collection of Rs 8 billion for Sindh Workers Welfare Fund (WWF) and Sindh companies profits (Workers Participation) Fund that SRB has been mandated to collect for the province.
The chairman SRB in his report says that standard rate of sales tax has been maintained at 13 percent during the year which is the lowest in any tax domain in the country, whether federal or provincial.
The collection effort has met challenges from the slow economic recovery, exacerbated by the impact of political transition in the last quarter of the year.
The Sindh government’s consistent support and taxpayers trust played an equally vital role in witnessing a growth of 27 percent.
According to annual report Telecommunication, ports & operators, banks, insurance executions and franchise services remained major contributors.
It said that sizeable growth was posted by other services, including business support and labor and manpower.
Top ten sectors contributed 57 per cent of the total collection compared with 63 percent last year.
Consistent effort is needed to tap the services hitherto escaping enforcement.
The renewed emphasis by national and subnational tax domains on documented transactions is likely to ameliorate the task.
The chief minister said that the Sindh government took a policy decision to neither impose new taxes nor enhance the existing for the year 2018-19 providing a space to the businesses in tight economic conditions.
The good will of this decision envisaged apart, the target of Rs120 billion set for the year 2018-19 becomes a daunting task given, in particular, the heightening challenge of litigation, he added.
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