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.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Afghan turbulence
Updated 19 Mar, 2024

Afghan turbulence

RELATIONS between the newly formed government and Afghanistan’s de facto Taliban rulers have begun on an...
In disarray
19 Mar, 2024

In disarray

IT is clear that there is some bad blood within the PTI’s ranks. Ever since the PTI lost a key battle over ...
Festering wound
19 Mar, 2024

Festering wound

PROTESTS unfolded once more in Gwadar, this time against the alleged enforced disappearances of two young men, who...
Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...