SRB witnesses 33 percent growth in H1 tax collection

The Sindh Revenue Board (SRB) Thursday claimed to have witnessed 33 percent growth in its revenue collection during first six months of current fiscal year. The official statistics revealed that the provincial revenue body has collected Rs 28.45 billion against Rs 21.39 billion during last corresponding period, depicting a 33 percent growth.
According to sector-wise collection, the board generated Rs 3.739 billion from terminal operators as compared to Rs 2.830 billion collection during last year. With an addition of Rs 407 million, the SRB collected Rs 3.452 billion from telecom sector against Rs 3.045 billion generated during the first half of last fiscal year. The board has also showed a phenomenal growth in the collection made from withholding agents as Rs 1.41 billion additional tax has been deposited to the provincial kitty, showing 77.18 percent growth against last year's Rs 1.828 billion.
Similarly, the SRB further surpassed its last revenue collection from banks, contract execution and other taxable services by Rs 799 million, Rs 1.384 billion and Rs 2.15 billion , respectively. It collected Rs 2.93 billion, Rs 2.73 billion and Rs 12.353 under these heads during the said period. When contacted, S Mustaque Kazimi, advisor on tax policy in SRB vowed that the board would achieve annual revenue target of Rs 61 billion for the ongoing financial year.
He said revenue collection rose despite reduction in tax rate from 19.5 percent to 18 percent for telecommunication services and from 15 percent to 14 percent in the statutory rate for other taxable services. Replying to a question, Kazimi said the reduction in tax rate had two-dimensional effect - static and dynamic, which yielded more revenue besides discouraging tax evasion.
Keeping the said revenue-prone effects in view, this concept has been introduced for current fiscal year in Sindh and tax rate for telecom services has slashed by 1.5 percent to 18 percent and one per cent in the statutory rate for other taxable services that enabled the SRB to increase revenue collection by Rs 7.06 billion only in six months, he maintained.