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Tag: Sindh Revenue Board

  • Dr. Wasif Memon appointed as SRB chairman

    Dr. Wasif Memon appointed as SRB chairman

    KARACHI: Dr. Wasif Ali Memon, a former senior officer of the Federal Board of Revenue (FBR), has been appointed as the Chairman of the Sindh Revenue Board (SRB) by the provincial government.

    The Sindh government has issued a notification dated November 23, 2021, to appoint Dr. Wasif Ali Memon as the chairman of the SRB.

    Dr. Wasif was already working in SRB as a senior member. Prior to this assignment, he had served as an officer of the Pakistan Customs Service (PCS) for 31 years in various capacities including chief collector and director-general.

    The contribution of Dr. Wasi Ali at the SRB in the capacity of a senior member (legal, audit, and IT) is worth mentioning as he expedited the process of effective litigation management, risk-based audit system besides introducing innovations in the digitalization of SRB.

    He worked in active coordination with other provincial revenue authorities and the Federal Board of Revenue (FBR) and participated in activities under the auspices of the National Tax Council.

    He also remained in close coordination with International Donors and Development Agencies.

    Given the relevant skillset and capacities gathered over his illustrious career of 32 years, as a thorough professional, SRB and the provincial government expect to hugely benefit from his services.

  • Indenters not paying tax despite rate reduction: SRB

    Indenters not paying tax despite rate reduction: SRB

    KARACHI: Khalid Mehmood, Chairman, Sindh Revenue Board (SRB) on Friday said that many indenters are still not paying tax and opted to approach court.

    SRB chairman stated this while sharing views with the members of Karachi Chamber of Commerce and Industry (KCCI).

    Khalid Mehmood said that sincere efforts were made to resolve the indenters issue whose tax was reduced from 13 percent to 3 percent yet, many indenters were still reluctant to pay tax and have gone into litigations. “If they (Indenters) have any other feasible option, it can be shared with SRB and we will take it into consideration,” he assured.

    He said that point of sale measure was being taken to capture sales of restaurants, beauty parlors and other outlets where a large number of cash transactions were taking place. “In this regard, we will be requiring your cooperation as it will be a substantive move,” he added.

    Chairman SRB said: “Instead of being a typically strict tax collecting authority, we try our best to make SRB a taxpayers’ friendly institution and we have succeeded in attaining this objective to a certain extent.

    “Even in those matters in which there were differences between the SRB and the business community, we usually act leniently in terms of enforcement and the Board has been overall enjoying good relations with the business community of Karachi.”

    He added that any unwarranted notice received by members of the business community can be brought to SRB high-ups’ notice who are always available to listen to and amicably resolve the issues.

    Chairman BMG Zubair Motiwala, while congratulating SRB Chairman on achieving record tax collection of Rs128 billion, stated that there was a huge potential for further growth as SRB has created an enabling and cordial environment in which the taxpayers were being facilitated as much as possible which was a very nice approach.

    He stressed that out of a total revenue of Rs128 billion, Karachi must be contributing somewhere around Rs110 billion and out of this huge contribution, the Sindh government should look into the possibility of spending half of the amount on development of Karachi.

    He further pointed out that the Worker Welfare Fund (WWF), which was either being submitted to SRB or FBR, was a serious issue that stands unresolved to date. Many taxpayers, who submit it to FBR, adjust WWF in Income Tax Returns but those taxpayers, who submit it to SRB, cannot carry out adjustment in IT returns.

    Hence, the SRB and FBR will have to sit together to deal with this issue as it puts the business community in confusing situation, he added.

    He further stated that sales tax on Exports was not being charged anywhere around the world hence it should not be charged here as well because all the services including shipping lines and terminals operators etc. were being availed for exports. “SRB must also rationalize its tax rates in consultation with KCCI as there was plenty of space available in numerous sectors where the tax rate can either be reduced or enhanced”, he opined.

    Vice Chairman BMG Haroon Farooki, in his remarks, stated that the business community faces a lot of problems and remains confused on various occasions when parallel taxes were being demanded by the FBR and SRB as well and both claim that these taxes fall under their domain. “This clash between the two tax collecting authorities puts legitimate taxpayers in a discomfortable position who sometimes even have to go to courts to settle the issues but it is high time that FBR and SRB must sit together to decide their domains in order to set the loyal taxpayers free from all the trouble”, he added.

    He mentioned that taxation issues of indenters, security agencies and travels agents etc. have still not been addressed at SRB level which require attention.

    Vice Chairman BMG Jawed Bilwani stressed that although Karachi contributes 95 percent revenue to SRB but sector-wise and city-wise breakup was unavailable. “SRB should look into the possibility of publicizing this important info so that we could examine the statistics and give inputs on where the tax rate needs to be enhanced and where it has to be reduced.”

    President KCCI Muhammad Idrees, while welcoming Chairman SRB, stated that since Khalid Mehmood assumed charge, SRB’s revenue has been constantly increasing every year and it was heartening to see that most of the revenue was being contributed by the business & industrial community of Karachi. “We have no problem in contributing so much and we can contribute even more but the funds being generated from Karachi must be utilized on the infrastructure of this city which was in bad shape.”

    He appreciated the support and cooperation being extended by Chairman SRB who has promptly resolved numerous issues highlighted by KCCI.

    Chairman Businessmen Group (BMG) Zubair Motiwala, Vice Chairmen BMG Haroon Farooki and Jawed Bilwani, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Advisor SRB Mushtaq Kazmi and KCCI Managing Committee Members attended the meeting.

    Sindh Revenue Board announces tax incentive package
  • Single sales tax portal to start functioning by month-end

    Single sales tax portal to start functioning by month-end

    ISLAMABAD: The single sales tax portal is likely to start functioning by end of October 2021 to facilitate taxpayers falling under all federal and provincial revenue jurisdictions.

    In a statement, the Federal Board of Revenue (FBR) said that building further on its ongoing drive for digitization and automation of various processes involved in revenue collection, the FBR had developed “Single Sales Tax Portal” to facilitate the taxpayers and ensure the ease of doing business.

    This watershed development of the Single Tax Portal developed by FBR is the outcome of various rounds of negotiations between FBR and the provincial revenue authorities.

    The FBR has already offered this portal to the provincial revenue authorities in order to facilitate the taxpayers through one-link facility. The portal is in the final stages of testing and is likely to be launched by the last week of October, 2021.

    It is pertinent to mention that till now, Sales Tax registered persons had to file their monthly Sales Tax returns separately to every tax jurisdiction where they conducted business, such as FBR, Sindh Revenue Board, Punjab Revenue Authority, Khyber Pakhtunkhwa Revenue Authority and Balochistan Revenue Authority. Some of the taxpayers had to file returns with revenue authorities of Azad Jammu & Kashmir and Gilgit-Baltistan.

    This was a cumbersome task, which often led to complications and disputes over jurisdiction.

    Single Sales Tax Portal will also help in simplification of the tax procedures. It will enable the taxpayers to save time and effort, and reduce their compliance costs. By minimizing data entry, it also addresses the issues of data and calculation errors.

    The system will automatically apportion input tax adjustment as well as tax payments across the sales tax authorities. Through this system, officers of all revenue authorities will be able to make better informed decisions about matters related to Sales Tax.

    The single portal system is a significant milestone towards taxpayers’ facilitation and a big leap forward towards harmonization of taxes between the Federal Government and the provinces.

    Sales tax return filing portal likely to start by next month
  • SHC dismisses petition challenging SRB show cause

    SHC dismisses petition challenging SRB show cause

    KARACHI: Sindh High Court (SHC) has dismissed a petition filed by Hum Network Limited for a grant of relief against a show cause issued by the Sindh Revenue Board (SRB).

    A division bench of the SHC in a case C.P.No.D-3735 of 2016, observed: “We are of the considered view that instant petition is misconceived and not maintainable for having been filed on mere issuance of show casue notice, which prime facie does not suffer from any jurisdictional defect or patent illegality, whereas, the objections raised by the petitioner through instant petition can be agitated before the statutory forums while submitting the response/reply to the impugned show cause notice in accordance with law.”

    Accordingly, the petition has been dismissed. The bench has also made reference to its short order issued on February 12, 2019, in the following terms:

    “For reasons to be recorded later, the instant petition is dismissed along with the listed application for being not maintainable. The petitioner may, however, be at liberty to raise all such legal and factual grounds before the respondent, including the ground of jurisdiction, which shall be considered and decided by the respondents strictly in accordance with law, whereas, an opportunity of being heard shall be provided to the petitioner before passing any adverse order against the petitioner.”

    Hum Tv Network, the petitioner, is a public limited company operating satellite TV channels engaged in the business of production, advertisement, entertained and media marketing, had challenged a show cause notice issued by an official of the SRB before the SHC on the ground that the same was malafide, illegal and was issued without jurisdiction and lawful authority.

    The show cause notice was issued by the official of the SRB under Section 23(2) read with Section 23(1A) of the Sindh Sales Tax on Services Act, 2011 for the periods from July 2011 to June 2012, July 2012 to June 2013, July 2013 to June 2014 and July 2014 to June 2015.

    The petitioner prayed that the show cause notice was issued without jurisdiction and lawful authority, as the notice issuing officer belonged to Unit-21 Commissioner-IV, had not jurisdiction over the case as the authority over ‘Withholding of Sindh Sales Tax Act’ was with the Assistant Commissioner (unit-22).

    The petitioner had also raised objection that in absence of any audit proceedings or inquiry pending against a registered persons, impugned notice cannot be issued.

    The counsel for the respondents (SRB) argued that the constitutional petition was not maintainable against Show Cause Notice as the same had not suffer from any jurisdictional defect or patent illegality.

    The SHC was informed that the petitioner had been given plenty of time on request of extension for reply. But the petitioner instead giving reply preferred to approach the court.

    SRB extends last date for sales tax payment, return filing
  • SRB extends last date for sales tax payment, return filing

    SRB extends last date for sales tax payment, return filing

    The Sindh Revenue Board (SRB) has announced an extension in the last date for payment and filing of sales tax return for the tax period of July 2021.

    (more…)
  • SRB extends date for sales tax payment, return filing

    SRB extends date for sales tax payment, return filing

    The Sindh Revenue Board (SRB) announced on Monday an extension of the deadline for sales tax payment and the filing of returns for June 2021.

    (more…)
  • Cable TV operators granted exemption of sales tax on services

    Cable TV operators granted exemption of sales tax on services

    KARACHI: The Sindh government has exempted sales tax on services for one year for cable TV operators within the jurisdiction of the province.

    The Sindh Revenue Board (SRB) has issued a notification to further exempt the sales tax on services rendered by cable TV operators till June 30, 2022.

    The Sindh government imposed sales tax on services rendered by cable TV operators through a notification issued on June 27, 2019. However, since then the levy has been exempted. Through a new notification the exemption is further extended for one more year till June 30, 2022.

    According to the amended notification:

    The provincial government has exempted Sindh sales tax on such of the services provided or rendered by Cable TV Operators, as are classified under tariff heading 9819.9000 of the Second Schedule to the said Act, subject to the conditions that such service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Cable TV Operators” of tariff heading 9819.9000 as his “Principal Activity” in row No. 12 of the Registration Form SST-01:

    Provided that where the service provider also provides other taxable services including the services of “advertisement on Cable TV network” of tariff heading 9802.5000, he shall also inter-alia indicate the economic activity of such taxable services in the relevant column of Activity Code of “Other Business Activities” in row No. 19 of the Registration Form SST-01;

    (b) is a stand-alone service provider of the taxable service of “Cable TV Operators” of tariff heading 9819.9000.

    Explanation: For the purposes of this notification, a “stand-alone” service provider means a person whose principal activity is the provision of services of “Cable TV Operators” of tariff heading 9819.9000 and whose other service-related business activity, if any, is restricted to the provision of the taxable services of “advertisement on Cable TV network” of tariff heading 9802.5000. Persons providing or rendering taxable services of any of the tariff headings, other than those of tariff headings 9802.5000 and 9819.9000, shall not be eligible to the benefits of this notification:

    Provided that nothing contained in this notification shall be construed to be exempting the taxable services of “advertisement on Cable TV network” classified under tariff heading 9802.5000 even if provided or rendered by such a stand-alone service provider;

    (c) e-files his tax returns (Form SST-03) regularly in the prescribed manner, showing the details of his exempt services of Cable TV Operators (tariff heading 9819.9000) and also of other taxable services including the taxable services of advertisements on Cable TV (tariff heading 9802.5000) therein:

    Provided that the tax returns for the tax periods July, 2016 to June 2021, if not filed earlier, shall be e-filed by the stand-alone service provider on or before the 31st day of July, 2021;

    (d) e-deposits his tax liability on the taxable services, including the taxable services of “advertisement on Cable TV network” (tariff heading 9802.5000), regularly in the prescribed manner:

    Provided that the tax liability for the tax periods July, 2016 to June, 2021, if not paid earlier, shall be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021; and

    (e) complies with the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, in relation to the taxable services, including the taxable service of advertisement on Cable TV network (tariff heading 9802.5000), as are provided or rendered by him and e-deposits the amounts of Sindh sales tax involved, in case such amounts are or were not deducted or withheld by the service recipient or the withholding agent in terms of the said Rules:

    Provided that the liability of Sindh sales tax under the aforesaid Sindh Sales

    Tax Special Procedure (Withholding) Rules, 2014, for the tax periods July, 2016 to June, 2021, if not paid earlier, shall also be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021.

    This notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax already paid or deposited by him in Sindh Government’s head of account “B- 02384” on any day prior to the date of this notification.

    This notification shall take effect from the 1st day of July, 2018, and, if not rescinded earlier, shall stand rescinded on the 30th day of June, 2022.

  • Sindh allows reduced rate of 5% sales tax on services to recruiting agencies

    Sindh allows reduced rate of 5% sales tax on services to recruiting agencies

    KARACHI: The Sindh government has allowed payment of sales tax on services at reduced rate of five per cent to recruiting agencies subject to terms and conditions.

    A notification issued by the Sindh Revenue Board (SRB) stated that the provincial government had allowed the sales tax on the services provided or rendered by the recruiting agents, as are classified under tariff heading 9805.6000 of the Second Schedule to the said Sales Tax on Services Act, 2011 and are also restricted to recruitment of persons or group of persons for employment outside Pakistan, shall be charged, levied and collected at a lower rate of 5% during the tax periods of the financial year 2021-22 subject to the conditions that such a service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Recruiting agents” of tariff heading 9805.6000 as his Principal Activity in his Registration Form SST-01:

    Provided that where the service provider also provides any other taxable services as described in the Second Schedule to the Act, he shall inter-alia indicate the economic activity of such services in the relevant column of Activity Code of Other Business Activities, as provided in row number 19 of the Registration Form SST-01, read with the provisions of sub-rule (3) of rule 4 of the Sindh Sales Tax on Services Rules, 2011;

    (b) is a stand-alone service provider of the taxable service of “recruiting agents” of tariff heading 9805.6000.

    Explanation: For the purposes of this notification, a “standalone service provider” means a person whose principal economic activity is the provision of services of “Recruiting agents” of tariff heading 9805.6000, and such economic activity of the provision of the services of recruiting agency is related to recruitment of persons or group of persons for overseas employment in countries outside Pakistan:

    Provided that the services provided or rendered by such recruiting agents in relation to recruitment of persons or group of persons for employment in Pakistan shall continue to be levied to tax at the rate of 13 per cent:

    Provided further that where a recruiting agent provides or renders any of the taxable service not classified under the aforesaid tariff heading 9805.6000, he shall pay the tax relatable to such services (other than the services of tariff heading 9805.6000) at the rate(s) applicable to the tariff heading(s) relatable to such other services;

    (c) e-deposits his tax liability on the taxable services regularly in the prescribed manner:

    Provided that the tax liability for the tax periods upto June, 2021, if not paid earlier, shall be e-deposited by the service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 15th day of July, 2021;

    (d) e-files his tax returns (Form SST-03) regularly, in the prescribed manner;

    (e) showing the details of his services liable to statutory rates of tax and also to reduced rates of tax, separately, in the same return:

    Provided that the tax returns for the tax periods prior to June, 2021, if not filed earlier, shall be e-filed by the service provider on or before the 20th day of July, 2021; and

    (f) complies with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules and notifications issued thereunder.

    This notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax.

    This notification, if not rescinded earlier, shall stand rescinded at 23:59 hours of the —30th day of June, 2022.

  • Sindh Revenue Board fails to achieve annual collection target

    Sindh Revenue Board fails to achieve annual collection target

    KARACHI: The Sindh Revenue Board (SRB) has missed the revenue collection target of Rs135 billion for fiscal year 2020/2021 and collected Rs128 billion during the year.

    However, the collection for 2020/2021 has registered an increase of 21 per cent in revenue collection for fiscal year 2020/2021 despite adverse economic environment due to coronavirus.

    The SRB collected Rs128 billion during fiscal year 2020/2021 as compared with Rs106 billion in the preceding fiscal year, a top official said on Thursday.

    The official said the growth in revenue collection is impressive considering the general economic slowdown and the resurgence of COVID during the year.

    The SRB however missed the revenue collection target of Rs135 billion for the fiscal year under review.

    The official that the collection of Rs128 billion includes record receipts of Rs121 billion of Sindh sales tax, representing a growth of 21 percent over the collection of Rs100 billion during 2019/2020.

    Collection of Sindh Workers Welfare Fund by SRB during 2020/2021 stood at Rs7 billion as compared to the collection of Rs6 billion during the preceding year, which also represents a growth of 17 per cent.

    The official said that the milestone that SRB had reached represented a consistency of achievement since organization’s inception since 2011, courtesy the hard work and steadfastness demonstrated by the workforce beyond the normal call of duty.

    The official said that no new tax was levied in the Sindh Budget 2020/2021. The business environment was also significantly unfavorable for the services sector which was hard hit by the COVID-19 throughout the year, forcing partial lockdowns.

  • SRB posts 52pc growth in May revenue collection

    SRB posts 52pc growth in May revenue collection

    KARACHI: The Sindh Revenue Board (SRB) has posted 52 percent growth in revenue collection during May 2021 as compared with same month of the last year, a statement said on Tuesday.


    The SRB collected Rs10.26 billion during May 2021 as compared with Rs6.734 billion in the corresponding month of the last year.


    The provincial revenue body collected Rs108.66 billion during 11 months (July – May2020/2021) as compared with Rs91.198billion in the corresponding months of the last fiscal year, showing a growth of 19 percent.


    The SRB attributed the significant growth of 52 percent in May 2021 to the continued trust and cooperation of the taxpayers, the support of Sindh government and the relentless efforts of the SRB officials.


    The provincial revenue authority said that it would continue to work hard to maximize the revenue collection during the last month of the current fiscal year, despite all adverse factors such as low economic growth and the resurgence of COVID-19, impacting the services sector.