SRB announces 52% 'phenomenal' increase in revenue collection for May
The government’s debt is growing at a double-digit pace due to its inability to enhance revenue at rates that are sufficient to absorb growing current expenditures. PHOTO: FILE
The Sindh Revenue Board on Tuesday stated that the authority had collected Rs10.261bn in tax revenue during the month of May, an increase of 52 per cent when compared to the same month during the last fiscal year.
"During the month of May 2021, Sindh Revenue Board has posted [a] revenue collection of Rs10.261 billion as compared to 6.734 billion collected during May 2020, thus registering a phenomenal growth of 52 per cent," the board said in a statement released today.
The communique further stated that "During the eleven months (July-May 2021), Sindh Revenue Board collected Rs108.686bn against Rs91,198bn in the same period of 2019-20, reflecting an increase of 19 per cent."
The board attributed the success in achieving the extraordinary revenue growth to "the continued trust and cooperation of SRB taxpayers, continuous support by the government and the relentless efforts of the SRB officers and staff".
SRB pledged to "continue to work hard to maximize the revenue collection during the remainder of the current financial year, despite all the adverse factors such as low economic growth and the resurgence of Covid-19, impacting the services sector."
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On Monday, the SRB announced a tax incentive scheme that allowed a total exemption of penalties. It also provided significant relief in payment of default surcharge to Sindh's sales tax defaulters.
In a statement, the SRB said that on the recommendation of the Chambers of Commerce and Industry and taxpayer associations, its board approved the proposal of a tax incentive scheme under which penalties would stand remitted.
There would also be a substantial exemption of default surcharge and liability would be provided to taxpayers and defaulters, provided they deposit the principal amount of the arrears of Sindh Sales Tax during the month of June 2021.
In the initial 12 days of June 2021, the Tax Incentive Scheme allows total exemption of penalty and default surcharge if principal amounts of arrears are deposited between June 01 and June 12 of 202l.
However, only 5 per cent and 10 per cent of the amounts of default surcharge will be payable if the tax amounts are deposited between June 21 and June 30, 202l, while penalty would remain totally eliminated.
The government hoped taxpayers benefit from this one-time facility expiring on June 30, 2021.