KARACHI: The Sindh Revenue Board (SRB) during the first nine months of current fiscal year recorded a growth of 14 per cent in revenue collection at Rs27.127 billion over the corresponding period of last fiscal year when collection stood at Rs24.410bn.

Under the 18th amendment, sales tax on services became a provincial subject, and the province took a lead in collection of sales tax on services and started collecting revenue from fiscal year 2011-12 through SRB.

Official sources disclosed on Thursday that if sales tax on services collected up to April 20 is added, it would take the amount to Rs30.151bn or 25 per cent higher over the corresponding period of last fiscal year.

The provincial government had given the SRB a target of Rs42bn for collection of sales tax for the current fiscal year and officials believe that if stuck up amount of around Rs3.1bn was not released by the Federal Board of Revenue (FBR) up to June 2014, it would be difficult for the provincial revenue collecting body to meet the target.

Sources said that sales tax on services for July 2011 was collected by the FBR because at that time the provincial revenue body was being formed. However, around Rs1.515bn collected during July 2011 were never transferred by the FBR to the SRB.

The SRB is currently collecting sales tax on 24 standard services which include telecommunications, advertisement, banks, non-banking financial sector and terminal operators. However, highest collection of up to 19.5pc comes from telecommunications sector, sources added.

However, many service providers, including marriage halls, clubs, consultants approached courts and got stay order against recovery and collection of sales tax on services.