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Sunday October 02, 2022

SRB attracts IT firms with low tax

By Our Correspondent
August 14, 2022

KARACHI: Sindh Revenue Board (SRB) has urged IT related businesses that had moved to Lahore and other cities from Karachi to come back and avail a lower sales tax as compared to other provinces.

Sindh announced reducing the sales tax on IT, software businesses, and call centers from 13 percent to only 3 percent in Budget'23.

“IT related businessmen from Karachi chamber whose peer businessmen moved to Lahore or any other city, must advise them to get back to Karachi where they will be charged a mere 3 percent sales tax without input tax,” said SRB chairman Wasif Ali Memon during a visit to the Karachi Chamber of Commerce & Industry (KCCI).

“Large establishments, which prefer standard rate with input tax credit, have an option to opt 13 percent with input tax credit facilities”, he added.

Sindh announced reducing the sales tax on IT, software businesses, and call centers from 13 percent to only 3 percent.

SRB collected a record Rs155 billion tax during the last fiscal year, said Wasif, adding, the provincial government had given an ambitious tax collection target of Rs180 billion for the current fiscal year. “The target can only be achieved through the support and cooperation of Karachi’s business community which was highly tax-compliant.”

Despite the outbreak of Covid-19 pandemic and extraordinary spells of rainfalls, which terribly affected many businesses, the business community of Karachi was regularly paying taxes to SRB, which the board greatly acknowledged, he added.

Memon continued to say that Karachi contributes highest taxes to SRB, while the board’s regional offices in other cities such as Hyderabad, Benazirabad, Larkana, Sukkur, and Mirpurkhas also contributed to reach the record collection. A new SRB office in Ghotki would be inaugurated soon, he announced.

In response to KCCI president’s suggestion, SRB chairman agreed to form a joint SRB-KCCI committee along with provision of a direct helpline to KCCI members so that all their taxation issues could be promptly resolved.

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