Sindh province is contributing around 52% in the total federal revenue collection whereas it is receiving only three per cent of it, said Sindh Revenue Board (SRB) Member Legal and Coordination Mumtaz Ahmad.
A delegation of the SRB headed by Member Operations Akhtar Jamil Khan, along with Ahmad, visited the Overseas Investors’ Chamber of Commerce and Industry (OICCI) to have a comprehensive discussion on the recently promulgated Sindh Sales Tax on Services Act 2011 (SSTSA).
Ahmad said that starting from fiscal year 2011-12, Sindh would collect sales tax on services rendered in the province at the rate of 16% and 19.5% on telecommunication services. He gave a brief presentation on the SSTSA 2011 and shared that the current tax-to-GDP ratio is 10.2%, out of which the federal ratio is 9.2% and provinces share one per cent of it.
Members of OICCI sought clarification from SRB regarding the input tax claim adjustments and inquired as to whether services such as telecommunication, advertisement, insurance and freight forwarding would be subject to double taxation since Federal Excise Duty is already applicable on them.
Published in The Express Tribune, July 13th, 2011.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ