KARACHI: The successful implementation of the tax rationalisation strategy has helped the Sindh government achieve commendable growth in provincial taxes.
“We have adopted a strategy of rationalising various tax bases to protect the underprivileged segments of society from unnecessary financial burden as the highest-ever inflation already squeezes them, and the strategy has paid off,” Mukhtar Soomro, Director Sindh Revenue Board (SRB), said.
“With these rationalisations, the affluent class has been taxed to generate revenue to provide necessary relief to the poor segments. Some provisions have been simplified and rationalised to reduce the compliance burden, promote the entrepreneurial spirit and provide tax relief to people and businesses,” he added.
He said the Sindh government had ensured to practically implement the proposed administrative reforms envisaged in the Sindh Tax Revenue Mobilisation Plan (STRMP) to create a facilitating environment for taxpayers.
Likewise, he added that the conversion of Sindh sales tax on services into Alternate Delivery Channel (ADC) mode of payment and introduction of e-stamps had yielded encouraging results.
Sajid Boghio, Directory Tax Policy, Sindh Finance Department, said that the provincial government had adopted ADC mode for collection of sales tax on services, facilitating the taxpayers to use digital platforms of online banking, credit/debit card payments, etc. “Likewise, e-stamps have been launched by SRB whereby customers can obtain e-stamps from its website.”
“Thanks to tax reforms and rationalisation strategy, SRB during December 2023 made a record revenue collection of Rs21.3 billion as compared to Rs17.5 billion collected during the corresponding month of 2022, which showed a growth of 22%,” Sajid Boghio said.
During the first six months of the financial year 2023-24, SRB collected Rs108.6 billion as compared to the collection of Rs80.2 billion during the first six months of the last financial year 2022-23, posting revenue growth of 35%, thus showcasing its commitment to fiscal excellence even in challenging economic times, he added.
“The success in achieving the phenomenal revenue growth is attributed to the continued trust and cooperation of SRB taxpayers, and the relentless efforts of SRB officers and staff,” he said.
He said SRB was focused on achieving the assigned revenue target of Rs235 billion for 2023-24 despite all the adverse factors, such as low economic growth, reduced economic activity and a stagnant tax base. –INP
