KARACHI, May 9: Sindh Chief Minister Syed Qaim Ali Shah said here on Monday that the provincial government has been collecting tax on all agricultural incomes above Rs300,000.

He, however, admitted that mechanism for tax collection was weak and needed an overhaul.

The chief minister was speaking at the concluding session of a conference on “Sales Tax on Services – Lessons Learnt and Way Forward”, organised by the Sindh Revenue Board here on Wednesday.

Mr Shah said the federal government had allowed Sindh to collect sales tax on services after a long struggle, calling the new arrangement “a great success”.

The chief minister said a common belief was that provinces did not have capacity and know-how to collect taxes, but Sindh had proved it wrong.

There are some differences between the federal government and Sindh over outstanding funds, Qaim Ali Shah added.

The chief minister expressed the hope that the federal government would pay outstanding funds for the province with regard to sales tax on services before the next budget so that our revenue target for the current fiscal year is achieved.