Sindh witnesses surge in tax revenue through 18th Amendment

Collected Rs1142 billion in taxes over a span of 13 financial years

KARACHI:

The province has experienced a significant surge in tax collections following the devolution of sales tax collection powers to the provinces through the 18th Amendment.

Over a span of 13 financial years, the Sindh government has successfully collected a staggering amount of Rs1142 billion in taxes. Comparatively, prior to 2009-10, when the federal government held tax collection authority, Sindh could only amass Rs9 billion in sales tax revenue.

The devolution of powers to the provinces proved to be a game-changer for Sindh, as the province saw an impressive jump in tax collection, reaching Rs25 billion in the first year alone.

Moreover, the Sindh Revenue Board (SRB) has witnessed a steady rise in tax collections, soaring from Rs9 billion to over Rs180 billion from 2009-10 to the recently concluded financial year 2022-23.

Furthermore, a target of Rs238 billion has been set for the upcoming financial year 2023-24.

The transfer of sales tax collection powers from the Federal Board of Revenue (FBR) to the Sindh Revenue Board has played a pivotal role in achieving this record-breaking revenue increase.

Presently, the Sindh government stands as the highest revenue earner among all provinces. However, with the devolution of tax collection powers to the provinces after the 18th Amendment, the Sindh government took charge by establishing the SRB.

Since its establishment, the SRB has witnessed a remarkable growth in tax collection. In 2010-11, the tax collection rose from Rs9 billion to Rs25 billion, followed by Rs25 billion in 2011-12, Rs32 billion in 2012-13, Rs42 billion in 2013-14, and Rs49 billion in 2014-15.

Subsequently, tax collections reached Rs61 billion in 2015-16, Rs78 billion in 2016-17, and Rs100 billion in 2017-18.

Similarly, the figures continued to climb with collections of Rs120 billion in 2018-19, Rs135 billion in 2019-20, and Rs150 billion in 2021-22.

Most notably, the tax collection for the year 2022-23 crossed the Rs180 billion mark.

Published in The Express Tribune, July 18^th, 2023.