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SRB collects Rs54.2b in 8 months with 16% growth

SRB collects Rs54.2b in 8 months with 16% growth

KARACHI: Sindh Revenue Board (SRB) collected Rs54.2 billion in the first eight months of the current fiscal year of 2017-18 as compared to Rs46.6 billion in the corresponding period of the last fiscal year, posting a growth of 16.12 percent, official data showed.

The provincial revenue board is, however, facing an uphill task of collecting nearly Rs46 billion in the remaining last four months of the current fiscal year in order to achieve the annual target of Rs100 billion.

Officials at the SRB said the revenue collection has so far been in line with the expectations and the board hoped to achieve the target through measures planned for the last quarter.

A senior official said the board planned to pursue cases in tribunals and courts for early their disposal as substantial amount is stuck in the lingering cases.

“Besides, the SRB has also started campaign for the recovery of outstanding amount from registered services providers,” the official said. In this connection, registrations of numerous high-volume corporate entities have been suspended in order to ensure compliance of returns filing and payment of outstanding taxes, the official added.

The official denied that Sindh government was planning waivers of penalty and default surcharge to encourage the taxpayers to pay off their liabilities. “However, if such immunity is planned then it would be a decision of the provincial government.”

SRB has the mandate of collecting sales tax on services, which are rendered or provided within the jurisdiction of the province. Sindh government established SRB in 2010 as an independent revenue collection agency. The board started collection through Sindh Sales Tax on Services Act in 2011.

The provinces were empowered to collect sales tax on services under the 18th Amendment passed on April 8, 2010. Sindh was the first to introduce legislation for the imposition of sales tax on services within its jurisdiction during the same year. Since then, all the provinces have now established their revenue authorities to collect tax on services rendered within their jurisdictions.

The data showed that the revenue collection by the provinces is gradually increasing with the expansion of the tax net. During the last fiscal year, the combined collection of provincial sales tax on services grew 32 percent to Rs170 billion.

Sindh tax authority surpassed revenue collection target of Rs78 billion during the last fiscal year.

The SRB official said the revenue collection during the last quarter (April- June) is usually higher than other three quarters. The official added the collection in the April-June quarter of the last fiscal year was 32 percent or Rs25 billion of the total collection of Rs78.2 billion.