Qaiser Rizwan Abbasi
Maintaining the trend of achieving new heights of success every year, Sindh Revenue Board (SRB) has successfully collected Rs 185.3 billion in the outgoing financial year 2022-23, surpassing the assigned target of Rs 180 billion by Rs 5.3 billion which effectively marked the growth of 21% over last year’s collection of Rs 153.5 billion.
Despite the wide-ranging factors, which could have negatively affected tax collection, including devastating floods in Sindh, overall economic slowdown and, most significantly, no new taxes imposed in Sindh tax-free budget, SRB managed to manifest outstanding performance in FY 2022-23.
SRB—a provincial tax-collecting organization under the Government of Sindh (GoS)—mandated to levy, administer and collect sales tax on services in the wake of the 18th constitutional amendment to the constitution of Pakistan, has been able to show remarkable performance since its inception in 2011. Being the largest tax-generating entity for GoS, SRB started its journey from Rs. 25 billion in FY 2011-12 to an unprecedented collection of Rs 185.3 billion in FY 2022-23, displaying a growth of 640% in revenue generation. During the year, 4,891 new registrations were made.
During the outgoing FY 2022-23, the top 10 sectors contributing to revenue comprise (i) Port, Airport & Terminal Operators; (ii) Telecommunication; (iii) Franchise; (iv) Bank; (v) Insurance; (vi) Contract Execution; (vii) Construction; (viii) Goods Transportation; (ix) Restaurant & Cafe; and (x) Technical, Scientific & Engineering Consultants.
Widely acclaimed and praised for its efficient resource mobilization system, SRB has been able to increasingly broaden its tax base, ensure greater tax compliance and generate much-needed tax receipts required to achieve economic prosperity for Sindh in particular and Pakistan in general. What is worth noting is the fact that SRB has set a benchmark for other tax-collecting agencies in the country by posting a substantial rise in revenue receipts every year, without an increase in the tax rate, which remains pegged at 13% since 2016.
With the service sector massively contributing to Pakistan’s economy, it presents serious challenges for the tax-governance machinery. Owing to this reason, SRB has developed IT tools in the shape of Enterprise Resource Planning (ERP) and Business Intelligence (BI) systems, which not only allow officials to engage in comprehensive predictive analysis and forecasting of business/taxation trends but also provide critical support in effectively crafting and vigorously executing policy decisions.
In addition to this, SRB’s initiative of enhancing technological infrastructure acts as a catalyst for progress in terms of advancing and modernizing tax administration, such as (a) implementation of e-taxation; (b) filing and assessment of tax returns; (c) enabling electronic payment of taxes; (d) real-time invoice verification; (e) sharing information on tax assessment between different departments of the government as well as facilitating audit and reconciliations.
Meanwhile, in an attempt to improve the collection of Sindh Sales Tax on Services, SRB has introduced Point-Of-Sale (POS) integration system, which has increasingly helped in documenting the economy. The scope of the POS integration system is presently confined to restaurants and online market platforms that are required to integrate their POS systems with SRB for live reporting of sales invoices.
This enables SRB to monitor the business activity of POS-linked restaurants as real-time sales data is conveyed to SRB. Through its taxpayer-friendly campaign, SRB is seeking to encourage relevant and potential taxpayers to register with the SRB’s system and download integration software to become part of the system.
Further, in order to facilitate the general public, SRB has also launched the SRB Mobile App. This App aims to provide necessary information to the public that whether an invoice given to them by the taxpayer is genuine or fake.
As restaurants shall print the prescribed invoice bearing SRB’s invoice number and QR code, customers can verify the bill or invoice with the help of the Mobile SRB App. The QR code shall be verifiable from SRB’s mobile App on the part of the customer ensuring that due sales tax is paid. In case, the invoice is not genuine, App will allow customers to lodge a complaint against the business entity. Meanwhile, the monitoring team shall take necessary actions as and when any discrepancy is detected.
While promoting core values—responsibility, diversity, teamwork, integrity, client satisfaction and, above all, innovation—SRB seeks to promote a taxpayer-friendly environment and holds itself accountable to all valued stakeholders i.e. GoS, taxpayers and society at large. With utmost dedication, commitment and a meritorious environment, SRB will keep on setting new revenue records in times to come.
—The writer is a taxation official working at Sindh Revenue Board (SRB).
