0
KARACHI: The Sindh Revenue Board (SRB) collected Rs19.2 billion during the first eight months (July-March) of the current fiscal year against a target of Rs25 billion fixed for the entire year.
It would be a historic year for Sindh for making a debut in sales tax collection on services and also by taking a lead over other federating units, Punjab, Khyber-Pakhtunkhwa and Balochistan.
The Federal Revenue Board (FBR) up to last fiscal year (2010-11) had been collecting sales tax on services on behalf of provinces and its proceeds later used to be distributed between the federating units after deducting two per cent service charge.
However, the Sindh government established Sindh Revenue Board (SRB) through Sindh Revenue Board Act, 2010, to administer collection of sales tax on services and assist in collection of other provincial taxes through computerised application.
The Sindh assembly in June 2011 unanimously passed the Sindh Sales Tax on Services Act, 2011, empowering the Sindh Revenue Board to collect and manage Sindh Sales Tax on services.
During the first eight months of current fiscal year, the province collected Rs14.5 billion as against the total transfer of Rs8.3 billion received from the FBR in the same period of last fiscal year.
Moreover, an amount of Rs2.5 billion is outstanding against the FBR in respect of services of June 2011, but tax amounting to Rs1.5 billion was collected in July 2011.
Besides, the SRB has some claims over other collections through composite challan amounting to Rs600 million and Rs400 million collected by the FBR ‘illegally’.
A high official of the SRB claimed that the board is expecting collection of Rs2.2 billion for services rendered in February 2012 but tax collection will be made in March 2012.
The official said that after adding Rs4.7 billion, net collection of the SRB for July to March would come to Rs19.2 billion as against total receipts of Rs15.3 billion towards sales tax on services from the FBR. The official further disclosed that the SRB has set up a full-fledged call centre to facilitate and educate taxpayers from and up to March 2012.
A total of 100,000 calls and queries were received from the taxpayers and responded in time. The board also launched its official website and till today a total of 96,000 visitors have visited the official website, he added.
There is a huge potential of increasing the tax base because a number of services are not yet in the tax net and certain exemptions on telecom, advertisements and insurance etc., are to be reconsidered.
The SRB official claimed that if correct policy measures are adopted, the province can generate and collect Rs100 billion out of the Sindh Sales Tax on Services in the next few years.
