Sindh CM directs BOR to improve tax collection

Karachi   -  The Sindh Board of Revenue, during the last three years (2020– 21 to 2022–23), was given a revenue recovery target of Rs100,640 million against which it could recover Rs48526 million, showing a shortfall of Rs52,114 million. Therefore, the Sindh Chief Minister directed it to propose the revival of abolished taxes and improve the e-stamping regime so that recoveries could be improved.

This was disclosed in a meeting held under the chairmanship of Sindh Chief Minister Syed Murad Ali Shah here at the CM House. The meeting was attended by Chief Secretary Asif Hyder Shah, PSCM Agha Wasif, SMBR Baqaullah Unar, Secretary Finance Fayaz Jatoi, Member Board of Revenue Abbas Baloch, Special Secretary Finance Nisar Memon, and others. At the outset, Secretary Finance Fayaz Jatoi told the CM that during the last three financial years, 2020–21 to 2022–23, the Board of Revenue (BOR) collected Rs48526 million against a target of Rs100,640 million, showing a shortfall of Rs 52114 million. The CM said, “BOR has to bring efficiency to its revenue collection.”

“The SMBR must recommend reforms where necessary; otherwise, it should take concrete measures to improve its performance,” he said, adding that he was not satisfied with its recoveries.

SMBR Baqaullah Unar said, “BOR collects five taxes.” He added, “During the current financial year, the BOR has a target of Rs55,218 million. The nine-month target comes to Rs41,414 million, against which it has recovered 33.57 percent, or Rs13,901 million.” 

The CM was told that the water rate recovery target was Rs 805.309 million, against which Rs74.540 million, or 9.2 percent, were recovered in 2022–23.

To a question, the CM was told that out of 6,090 dehs in the province, the collection of 2,173 dehs was made by the Sindh Irrigation Drainage Authority (SIDA).

The collection of Rs74.540 million has been made from 3,917 dehs assigned to the Revenue Department. The Agriculture Income Tax (AIT) nine-month target is Rs2,723 million, against which the BOR collection is 44.82 percent, or Rs1,220 million.

The collection of registrations is 24.60 percent, or Rs244 million, against a target of Rs990 million. Similarly, the stamp duty target was Rs 36,787 million, but its collection was 33.24 percent, or Rs 12,229 million. 

The CM pointed out that the threshold for AIT exemption is 1.2 million, which is very high and may be brought to par with the FBR threshold of 0.4 million.

He said that the bar on assessment of AIT beyond the preceding two assessment years may be modified to six years. Shah said that the manual crop inspection, assessment, and collection procedures need to be digitised.

In response to a question regarding the shortfall in stamp duty, the CM was told that the overall economic situation of the country has affected the transactions of immovable properties.

ePaper - Nawaiwaqt