Karachi, February 9, 2024 – The Sindh Revenue Board (SRB) has reported a noteworthy milestone in its fiscal year 2022-23 collections, with sales tax from port services emerging as the leading contributor, totaling Rs. 23.58 billion.
The SRB report on Friday highlighted the consistent growth of Ports, Airport, and Terminal Operators, reaffirming their status as the primary revenue generator for the fiscal year.
The port services sector exhibited remarkable performance, witnessing a 15 percent increase in tax revenue compared to the preceding fiscal year, where collections stood at Rs. 20.54 billion. The revenue growth underscores the economic significance and continued expansion of Ports, Airport, and Terminal Operators in the region.
Services provided by Ports, Airport, and Terminal Operators fall under the Sales Tax on Services (SST) category, specifically tariff heading 9819.9090 of the Second Schedule to the 2011-Act. This category encompasses major ports like Karachi Port Trust and Port Qasim Authority, as well as Terminal Operators such as South Asia Pakistan Terminals, Engro Energy Terminal Limited, Karachi International Container Terminal, Pakistan International Container Terminal, and Qasim International Container Terminal. Off-dock terminals like NLC, Pak Shaheen, Al-Hamd, and Hyderabad dry port, along with cargo or baggage shed operators authorized by customs authorities, also contribute to the overall SST from this sector.
The statutory tax rate for these services is set at 13 percent, a factor contributing to the substantial revenue generated by the sector. The SRB’s ability to effectively collect sales tax from Ports, Airport, and Terminal Operators reflects the robust regulatory framework in place and underscores the economic vitality of the maritime and logistics industries in Sindh.
The sustained growth in collections from this sector indicates a positive trend for the region’s trade and logistics activities. As key players continue to contribute to the economic landscape, stakeholders are optimistic about the potential for further expansion and development in the Ports, Airport, and Terminal Operators segment.
The SRB’s proactive approach to reporting and monitoring revenue trends not only enhances transparency but also provides valuable insights for policymakers and industry stakeholders. With the port services sector playing a pivotal role in revenue generation, the SRB’s efforts contribute to a more informed and strategic approach to economic planning and development in the region.
