Sindh Revenue Board (SRB) is striving to raise revenue collection to Rs 100 billion by 2017-18; said Chief Minister Sindh Syed Qaim Ali Shah. Speaking at the Tax Forum, 2015 organised by SRB at a local hotel here on Wednesday, the chief minister said that in the past governments had preferred Federal Board of Revenue (FBR) for collection of sales tax on services for provinces and the share transferred to the provinces was based on population. Resultantly, Sindh, which was contributing 70 percent of the total revenue collection used to get only 23.5 percent revenue share from federal government.
Keeping the situation in view, the PPP-led government developed consensus among all provinces on 7th NFC award and 18th constitutional amendment that paved the way for establishment of provincial revenue collection authority in 2010.
He said that SRB, which was working without any political influence, was striving to raise revenue collection twofold or Rs 100 billion by 2017-18 and added that before 7th NFC, the Sindh government was not able to determine its revenue share given by the federal government under divisible pool that stagnated the progress of development projects. "Now, the Sindh government after the establishment of SRB is spending 100 times more on education, health and other development projects," he added.
In the past, land revenue department was top revenue collecting body but now SRB replaced it, he said and added that Sindh government after having self-sufficient 'SRB' was now able to address Karachi's core issues- water, energy, etc.
To a question, Shah said that Sindh got only 35 percent gas, despite producing 70 percent of total gas hence federal government instead of offering LNG to the province for meeting its energy demand, should increase its gas quota as per NFC award.
Moreover, he said that federal government, which was supposed to provide 30 percent share or Rs 42 billion on account of gas development surcharge to Sindh, had changed the title with Gas Infrastructure Development Cess to avoid transferring Sindh's due share.
"Sindh government has expressed strong resentment over the federal government's move and demanded to transfer its due share as per 7th NFC award,"he added.
The Chief Minister further said that Sindh government after 7th NFC award had 56 percent share of its resources, which must be raised to 57 percent in current fiscal year.
Earlier, chairman SRB Tashfeen K. Niaz in his welcome address apprised that SRB was the only revenue collection authority, which reduced tax rate to 15 percent from 16 percent.
He said that around Rs 15 billion taxes were pending due to litigation and SRB in order to deal with the legal issues had a meeting with chief justice of Sindh.
Moreover, Tashfeen said that authority was going to send its team to India to get insight about negative list and added that SRB would be moving toward negative list, which would help the board to avoid litigation issues. This negative list will hopefully be presented to chief minister Sindh for next budget, he maintained.
Chairman SRB said that the board would again propose Sindh government to make legislation for bringing doctors, lawyers and other service providers into tax net from next fiscal year.
He said that with the financial assistance of World Bank, SRB was not only sending its officers to London School of Economics for capacity building but also planning to organise international seminar to discuss tax-related issues with international experts.
Furthermore, he said that federal government had transferred only Rs 8 billion against sales tax on services in 2010-11 and now Sindh government after the establishment of SRB was able to collect Rs 49 billion in 2013-14.
The SRB chairman informed that the board had so far enrolled 10972 taxpayers and out of them 6339 registered persons were actual taxpayers. He said that SRB was going to be the first revenue collection authority, which would provide complete online tax payment system to the taxpayers in current financial year. "For the purpose, SRB has acquired assistance from State Bank of Pakistan, National Bank of Pakistan and 1-Link," he added.
Talking about SRB's achievement, he said that the board had launched its website to answer all queries of the taxpayers and also established state-of-the-art data centre to maintain all relevant details related to taxpayers.
Other speakers discussed the topics: economics of sales tax on services, impediments in transfer of all sales taxes to the provinces, future of provincial tax administration, experience of working with provincial tax administration, World Bank interest in provincial taxes, 8th NFC award & Sindh, agriculture tax and future vision of excise and taxation department.
Speakers were Dr Imran Ali, Dean Karachi School of Business & Leadership, Asif Kasbati, member Tax Reforms Commission, Shabbar Zaidi, chartered accountant, Bashir Ali Muhammad, chairman Pakistan Business Council, Shersha Khan, chief public sector specialist of World Bank and others.
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