New Section 73A seeks to protect taxpayer confidentiality while allowing information sharing with authorised government agencies
KARACHI, June 19, 2026: The Sindh government has proposed introducing a comprehensive legal framework governing the confidentiality and disclosure of taxpayer information through the Sindh Finance Bill, 2026.
The proposed legislation seeks to insert Section 73A into the Sindh Sales Tax on Services Act, 2011, establishing clear rules regarding the protection, use and disclosure of information submitted by taxpayers to the Sindh Revenue Board (SRB).
The new provision is aimed at safeguarding confidential taxpayer information while allowing limited disclosure to authorised officials and government agencies for tax administration and enforcement purposes.
Protection of Taxpayer Information
Under the proposed Section 73A, all particulars contained in:
• Statements, returns, accounts or documents submitted under the Act;
• Evidence, affidavits or depositions made during proceedings under the Act; and
• Records relating to assessments or recovery of tax demands,
shall be treated as confidential.
The law further states that no officer of the Sindh Revenue Board, including its Chairman, Members, Secretary or any public servant, shall disclose such information except as specifically permitted under the Act.
Limited Exceptions Allowed
The proposed provision allows disclosure of taxpayer information to persons engaged in the administration and enforcement of the Sindh Sales Tax on Services Act where access to such information is necessary for carrying out official duties.
This exception is intended to ensure the effective implementation of tax laws while maintaining the confidentiality of taxpayer records.
Information Sharing with Government Agencies
The proposed Section 73A also permits the sharing of information with departments and authorities of the Federal Government and provincial governments that are legally authorised to access such information.
In addition, taxpayer information may be exchanged under bilateral or multilateral agreements entered into by the Sindh Revenue Board with other government departments or authorities for the purpose of enforcing taxes, duties or levies administered by those entities.
Tax experts believe the amendment will provide a clearer legal basis for cooperation between tax authorities while ensuring that taxpayer information remains protected from unauthorised disclosure.
Strengthening Tax Administration
The introduction of a dedicated confidentiality and disclosure provision brings the Sindh Sales Tax on Services Act in line with modern tax administration practices, where taxpayer privacy is balanced with the need for inter-agency cooperation and enforcement.
Stakeholders say the measure could improve taxpayer confidence in the handling of sensitive financial information while facilitating better coordination among revenue-collecting authorities.
The proposed amendment will take effect upon approval of the Sindh Finance Bill, 2026 by the Sindh Assembly.
