Collection of sales tax on services enhanced to Rs78.66bn in last financial year

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that the total collection of the Sales Tax surged to Rs78.66 billion in 2016-17, showing a remarkable increase during the last six years. Earlier it was stood at Rs16 billion in 2010-11.

Speaking at the assembly, the Chief Minister said that the federal government was of the view that the provinces do not have the capacity to handle tax collection, but the Sindh government has proved that not only does it have the requisite capacity, it can perform this duty more effectively.

He further claimed that only one tax has been devolved to provinces, which is sales tax on services.

The glaring example of this contention is the comparison of collection figures of sales tax on services when it was with the Federal Government, which stood at Rs16 billion in FY2010-11 with the collection by the province after devolution with figures of Rs78.66 billion in 2016-17, showing a marked increase in the collection received by the province.

Arshad Hussain
The author is business reporter at Pakistan Today. He can be reached at [email protected] He tweets @ArshadH47736937
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