Sindh CM seeks sales tax collection powers

Believes province will be able to collect more taxes as it is closer to consumers

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that he has been requesting the federal government to hand over collection of sales tax to the provinces because consumers are closer to them.

He said this while talking to International Monetary Fund (IMF) Country Representative Tokhir Mirzoev at the CM House on Wednesday.



The IMF country representative discussed the economy of Sindh, development activities and fiscal relations between the provincial government and the centre. He also discussed the IMF report released recently, which emphasised on the spending of federal funds, particularly on the social sector.

The chief minister said the Sindh government had achieved almost all its tax collection targets set by the Sindh Revenue Board and the Excise and Taxation department, but only the Board of Revenue lagged behind in achieving its target. He added that agriculture income tax target had been increased from Rs650 million to Rs1 billion.



“We are introducing reforms in agriculture income tax and hope to achieve the target of Rs1 billion,” said Shah.

He said total provincial receipts stood at Rs199.6 billion while a major chunk of Rs627.3 billion came from the federal government. “We are trying to increase our own resources.”

The chief minister complained that the federal government mostly failed to achieve its recovery targets, which caused shortfalls in federal transfers to the province, hence affecting the province’s cash flow.



“I am sure provincial governments will be able to collect more than the targets given to them by the federal government because they are closer to the consumers.”

Shah said he had tried to develop a better fiscal policy under which the budget had been announced and special attention had been given to social sectors.

Speaking on the occasion, Mirzoev said fiscal management was most important for a provincial government.

“The provincial government is doing better, but even then a study of the entire financial system is necessary for future planning and management,” he added.

Published in The Express Tribune, July 20^th, 2017.

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