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Sindh Revenue Board Government of Sindh
Generating Revenue for People
Copyright © 2015. Sindh Revenue Board
Sindh Revenue Board Government of Sindh
Generating Revenue for People
SRB’s Perspective
SRB Tax Forum 2015
Hotel Marriott Karachi
Tashfeen K. Niaz Chairman
8th April 2015
Copyright © 2015. Sindh Revenue Board
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Gratitude SRB is grateful to and welcome the Honourable Chief Minister Sindh Syed Qaim Ali Shah, Honourable Finance Minister Sindh Syed Murad Ali Shah and all the speakers, participants, distinguished guests and SRB staff to the SRB Tax Forum 2015.
Copyright © 2015. Sindh Revenue Board 3
Sindh Revenue Board Government of Sindh
Generating Revenue for People
We miss you today Aaah !
Justice Rana Bhagwandas – A true and honest Pakistani.
It was here that I met him first and it was here that he spoke on
governance. I would have asked him to speak on tolerance today and I
am sure he would have said that in order to develop as a Nation we
must be fully tolerant and learn to agree to disagree in a professional
and human manner.
Copyright © 2015. Sindh Revenue Board 4
Sindh Revenue Board Government of Sindh
Generating Revenue for People
SRB Tax Forum 2015 • We are overwhelmed with the response given
and based on the success of the event last year that we have made SRB Tax Forum an annual event.
• The purpose of this forum is to have an open discussion on all aspects of Taxation and taxpayer facilitation.
• Objective of the forum is to provide a cross sectional view of taxation in Pakistan as administered by the provincial government.
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Sindh Revenue Board Government of Sindh
Generating Revenue for People
Our Motivation
عقابباِد مخالف سے نہ گھبرا اے تندئ
یہ تو چلتی ہے تجھے اونچا اڑانے کے لیے
Copyright © 2015. Sindh Revenue Board 6
Sindh Revenue Board Government of Sindh
Generating Revenue for People
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Vision To achieve economic prosperity in Sindh and Pakistan.
Mission To create an efficient provincial resource mobilization system which can fund economic prosperity of the province.
Sindh Revenue Board Government of Sindh
Generating Revenue for People
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The only tax authority to
To reduce the statutory standard rate of SST from 16% to 15%.
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Our Achievements Met the 7th NFC target of increasing the tax base and revenue generation helping increase tax to GDP ratio. This also helped in increasing the documentation of the economy.
Sindh’s largest tax collection authority with 160 employees achieving a collection of Rs. 306 Million per employee.
Fully automated sales tax collection.
Friendly tax authority i.e. concept of tax advisor as opposed to a tax collector.
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Introducing the negative list concept of taxation instead of Schedules for taxation,
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Our Achievements
Recognition for good governance.
Creation of active website giving active current information.
Corporate (MNC type) working environment for our staff.
Total operational independence i.e. reporting to the CM through CS.
Establishment of a state of art Data Centre.
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Sindh Revenue Board Government of Sindh
Generating Revenue for People
Our Achievements
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Successfully negotiated Sindh Government Reforms program
with World Bank where SRB is a big beneficiary and World
Bank will assist is improving the capacity of our employees and
further automation of the system.
Under the capacity building program of negotiated with London School of Economics capacity building program for SRB Training Centre the first ever by LSE in Pakistan.
Working in the Final phase of getting SBP approval on online payment of sales tax with 1-Link and NBP
Working with World Bank on systems development for Business Intelligence, Automation, Audit, TELCOS.
Reduce the gap between actual taxpayers and registered taxpayers.
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Our Achievements Holding an International Tax Forum in Karachi in August / September 2015 Under the TAGR part of program to
Under the 5 year strategic plan hired 25 entrants based on a criteria which is based on merit and total transparency through NTS, Internal Test and Group Discussions.
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Sindh Revenue Board Government of Sindh
Generating Revenue for People
Work with the Stakeholders
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Taxpayers
Government at all levels
Trade Bodies
International Agencies
Regulatory Bodies
Employees
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Establishment and Performance
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Following 7th NFC and 18th constitutional amendment with the spirit of giving provincial financial independence to the provinces Sindh Revenue Board (SRB) and Punjab Revenue
Authority (PRA) were created in Sindh and Punjab
After the devolution of sales tax on services Sindh have shown better
performance than before . Last FBR collection in 2010-11 was Rs. 8 BN our this years budget is Rs. 49 BN and we
are on target for now..
Sindh Revenue Board Government of Sindh
Generating Revenue for People
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Sales Tax on Services Collection FY 2010 thru 2015
Sindh Revenue Board Government of Sindh
Generating Revenue for People
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Sector wise registration Total Registered Taxpayers - 10972
PORT RELATED SERVICES, 3168
TRANSPORT AND COMMUNICATION, 549
BANKING AND FINANCE, 418
ADVERTISEMENT AND MEDIA, 692 FOOD AND
ACCOMODATION, 878
BUSINESS AUXILIARY
SERVICES, 1412
VARIOUS OTHERS, 1928
BUILDERS AND DEVELOPERS, 925
WITHHOLDING AGENTS, 1002
Sindh Revenue Board Government of Sindh
Generating Revenue for People
SRB’s Contribution in Provincial Taxes (Rs in Million)
SRB's share is 46% of Sindh's Total taxes of Rs 107 Billion
2014-15 2013-14 2012-13
Total Provincial Tax Receipts 125,000 120,000 100,712
Sales Tax – SRB 49,000 42,000 32,000
% age of total 39% 35% 32%
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Tax Collection in Retrospect Confidence of Sindh Government in SRB
SRB Revenue Collection has
increased by 431% in from 2008-9 to 2013-14
SRB is the only tax authority in Pakistan which exceeded its budgetary since its inception.
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2014-15 • Budget: Rs. 49 Bn
• Collected: Rs. 35.8 Bn (as of 4th April 2015
2013-14 • Budget: Rs. 42.0 Bn
• Collected: Rs. 42.5 Bn
2012-13 • Budget: Rs. 32 Bn
• Collected: Rs. 33.9
2011-12 • Budget: Rs. 25 Bn
• Collected: Rs. 25 Bn
Collection against Budget
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Strategic Vision (from 2014-15 to 2017-18)
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Sindh Revenue Board Government of Sindh
Generating Revenue for People
SRB Strategic Goal & Performance at a Glance
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Fiscal Year Rs. BN
2010-11 18
2011-12 25
2012-13 34
2013-14 43
2014-15 36
Total 156
* Upto April 6,
2015
To achieve annual Sales Tax on Services
Collection amounting to Rs.100 BN, by the FY
2017-18.
Since our inception in
2011 we have registered 10972 taxpayers and
collected Rs.112 BN
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Our future vision Collection of Rs. 100 BN in fiscal year 2017-18
In Rs. BN
Fiscal Year Budget Collection % age +
2010-11 18 18
2011-12 25 25
2012-13 32 34
2013-14 42 42.5
*2014-15 49 35 27
2015-16 61 28
2016-17 78 28
2017-18 100 28
405 154.5
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* Current Year
Sindh Revenue Board Government of Sindh
Generating Revenue for People
SRB is gearing up to a challenge of collecting
Rs. 100 BN by the fiscal year 2017-18.
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It is an ambitious target but one which is well thought of and is
achievable.
Our Strategy to achieve is based on bringing improvement in the following
areas of our operations.
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Litigation
Improving coordination and reconciliation between tax authorities in Pakistan. We have the best relations with all tax authorities in Pakistan.
Reducing the gap between taxpayers and registered taxpayers Increased actual tax payers from 4941 to 6339 in 2014-15 +28.29%
Online collection system waiting for final approval of SBP hopefully will be launched in the current financial year. Thanks a lot to SBP NBP and 1-Link
Installation of POS Terminals waiting for World Bank consultants to come on board and work with them
Organizational revamping
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Strategic Direction to improve the following areas:
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Important Work in Progress Currently some very important work at SRB is in progress which includes the
following:
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• Implementation of the World Bank program on Sindh Governance Reform Program, which has earmarked $ 40 Million for SRB.
• The London School of Economics / SRB Training Program where the mock training program was scheduled to start on April 8-12, 2014, but is delayed due to a serious fire at LSE.
• SRB Taxpayer electronic transfers, which is scheduled to be launched in Fiscal year 2014-15.
• Tax proposals for Budget 2015-16 due in April 2015.
• Negotiations with Federal Finance Ministry, FBR, PRA on sales tax matters.
• Establishment of SRB Tribunal.
• Effective monitoring of SRB revenue collection target for 2014-15 to bring to a good final closure.
• Management and implementation of SRB Strategic plan approved by the Honourable Chief Minister.
• Management of SRB Taxpayers and Trade Bodies interaction.
Sindh Revenue Board Government of Sindh
Generating Revenue for People
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Moving forward in the spirit of 18th Constitutional Amendment
We feel that Federal Government is reluctant in implementing the spirit of devolution of powers to the provinces.
In the words of our CM to an IMF meeting “People of Pakistan live in the provinces and it is the provinces where we have issues with Health and Sanitation, Education, Social
Welfare and Law and Order.
We have to understand that Provinces make Pakistan instead of breaking
Pakistan into provinces.
We fully support the idea of the tax reform commission that the tax should
collected by one authority and as such are of the view based on the success of
provincial tax collections of GST, the Provinces should be should be given the
whole of the sales tax.
Sindh Revenue Board Government of Sindh
Generating Revenue for People
My Questions
• Should we change the rate of taxation.
• What new sectors should be taxed.
• Should we go for single digit taxation.
• What improvements would you suggest in
tax processing and tax collection.
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Sindh Revenue Board Government of Sindh
Generating Revenue for People
Questions and Answers
The program of the forum has given enough time
to questions and answers from anyone to anyone
and I know it is very difficult to hold your questions
along with with some other things. I will therefore
request and encourage all the guests to note it
and ask them in the question and answer session.
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Sindh Revenue Board Government of Sindh
Generating Revenue for People
Thank You
Copyright © 2015. Sindh Revenue Board 28
Sindh Revenue Board Government of Sindh
Generating Revenue for People
Thank You
In case of any queries please contact me at
[email protected] or SRB Help Line at
[email protected] or call 111-778-000
or call the hotline at
0800 00778
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