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Wednesday April 24, 2024

Sindh’s collection of sales tax on services up 32pc

By Hina Mahgul Rind
February 03, 2016

KARACHI: Collection of sales tax on services by the Sindh government has increased by 32 percent to Rs33.521 billion, up by 8.119 billion during the first seven months of 2015/16 as compared to Rs25.402 billion in the same period last year, Sindh Revenue Board (SRB) monthly data revealed on Tuesday.

The Sindh Revenue Board collection witnessed an increase of 26 percent to stood at Rs5.065 billion in January as compared to Rs4.012 billion in the same month last year.

Significant growth in tax collection was also witnessed in all the sectors.

Sales tax on services is collected from all terminal operators, banks and financial institutions, insurance and telecom sector.

The provincial government reduced the sales tax on telecommunication services to 18 percent from 19.5 percent, while the tax rates on other services were brought down to 14 percent from 15 percent.

An official of the Sindh Revenue Board (SRB)  attributed the increase in revenue collection to reduction in tax rates, which always had an affect on tax yields, as it increases tax compliance and cost of evasion, boosts taxpayers' confidence and induces correct declaration of turnover.

The proximity of taxpayers with the tax administration encourages prompt responses, increases interaction and better understanding with the least cost on travel and time, he added.

The Sindh Revenue Board has improved its correspondence with the taxpayers and the queries have been responded within 24 hours via e-mail and within a week by postal mail.