New Section 73A protects taxpayer information while allowing limited disclosure for tax administration and inter-governmental cooperation.
KARACHI: The Sindh government has introduced a dedicated taxpayer confidentiality framework by inserting Section 73A into the Sindh Sales Tax on Services Act, 2011 through the Sindh Finance Act, 2026, strengthening legal safeguards for taxpayer information while permitting limited disclosure for tax administration purposes.
The newly enacted provision declares tax-related information confidential and establishes clear rules governing when such information may be disclosed, with the objective of balancing taxpayer privacy and efficient tax administration.
Taxpayer information protected
Under Section 73A, all particulars contained in statements, tax returns, accounts and other documents submitted under the Sindh Sales Tax on Services Act will remain confidential.
The confidentiality protection also extends to evidence, affidavits and depositions made during proceedings under the Act, as well as records relating to assessment and recovery proceedings.
The law prohibits any officer of the Sindh Revenue Board (SRB), including the Chairman, Members, Secretary and other public servants, from disclosing taxpayer information except in circumstances specifically authorised under the legislation.
Limited disclosure permitted
The amendment allows confidential information to be disclosed where it is necessary for a person performing official functions under the Sindh sales tax law to carry out responsibilities related to the implementation and enforcement of the Act.
According to the new provision, the exception is intended to facilitate effective tax administration while ensuring taxpayer records continue to receive legal protection.
Information sharing with government agencies
Section 73A also authorises the Sindh Revenue Board to share taxpayer information with departments and authorities of the federal and provincial governments where those agencies are legally entitled to receive such information.
In addition, the law permits information sharing under bilateral or multilateral agreements concluded between the SRB and other government departments or authorities for the administration or enforcement of taxes and levies collected by those agencies.
The framework is expected to improve coordination among tax authorities while ensuring that the exchange of taxpayer information takes place within a clearly defined legal structure.
Modernising the provincial tax system
The introduction of Section 73A forms part of the broader reforms enacted through the Sindh Finance Act, 2026, aimed at modernising the province’s tax administration and improving compliance.
The Sindh government said the amendment strengthens taxpayer privacy by providing explicit legal protection for confidential information while enabling limited and regulated information sharing to support tax enforcement and inter-governmental cooperation.
The new framework is also expected to enhance transparency and public confidence in the provincial tax system by ensuring that taxpayer information is handled in accordance with clearly defined legal safeguards.