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Sindh collects Rs854m under ST on services

August 16, 2011

SBR Chairman termed the collection a good response and that Sindh had taken a lead by successful operation of its on-line system. - File photo

KARACHI: The Sindh Revenue Board, which started collection of sales tax on services from the current year, has collected Rs350 million in cash and Rs504 million in cheques by Aug 15, which was originally the last date.

SRB chairman Nazar Hussain Mahar told Dawn on Monday that on representation from the taxpayers citing Ramazan and recent disturbances the last date for filing returns of ST on services has been extended by Aug 25.

Terming the collection a good response he said Sindh had taken a lead by successful operation of its on-line system for collection of sales tax on services, which is not only transparent but also helpful to companies to get their problem solved locally by approaching its call centre, which remains open from morning till midnight.

Replying to a question he said the government had given a target of Rs25 billion to the SRB for the current fiscal year.

He said so far over 1,000 corporate taxpayers, including banks, insurance, customs agents, ports and terminals and telecommunication services had registered with the SBR.

The on-line system will indicate which companies have failed to deposit their tax returns.

The Sindh Sales Tax on Services Act, 2011, which was passed by the Sindh Assembly unanimously, was binding on taxpayers to pay due tax to the government.

In the act there was a provision to initiate legal action against such defaulters.

He said that according to the act the province is now empowered to levy, assess, collect and administer ST on Services provided, rendered, initiated, received or consumed in the province.

Under the ST on Services Act, 2011 the jurisdiction of province has been expanded by including new services like banking, modarabas, non-banking financial institutions, insurance, and telecommunications etc.

The act has repealed the Sindh Sales Tax Ordinance, 2000 and has empowered the Sindh Revenue Board to administer and collection of sales tax on services.

In reply to a question he said education, health services, water supply, roads and law and order like issues were the responsibility of the provinces but their share in resources used to be less than one per cent of the GDP and often they had to look to the federation for payment of salaries to its employees.