Ahmed Khan Malik

The Sindh government plans to explore new avenues for substantial growth in the collection of provincial taxes to generate sufficient funds for development purposes.

“The new plan will be announced in the next budget of the province,” a senior official of the Finance Department told WealthPK. He said the new initiatives will focus on bringing untaxed sectors into the tax net as well as raising the taxes on already taxed sectors.

“The plan is aimed at boosting provincial revenues and reducing reliance on federal transfers,” said Sohail Farooqi, Director of Revenue Mobilisation Wing. He added that the provincial government had renewed focus on expanding and diversifying its tax collection base.

He said that this initiative is part of a broader effort to enhance financial autonomy and ensure sustainable development funding across the province.

According to him, the province is exploring a variety of untapped sectors and implementing modern digital solutions to improve compliance and transparency. “These reforms come as Sindh grapples with mounting developmental needs and a growing urban population demanding improved infrastructure, healthcare, and education services.”

Farooqi pointed out that key areas under consideration for new tax initiatives include the real estate sector, digital services, and informal businesses that have traditionally remained outside the tax net. “The government is also evaluating the potential of green taxation mechanisms to incentivise eco-friendly practices while generating additional revenue.”

“We are looking beyond traditional models. There’s a significant untapped potential in areas such as e-commerce, ride-hailing services, and freelance work,” said the official. “Our goal is to create a fair, inclusive system where every sector contributes its due share.”

Farooqi said that the Sindh Revenue Board (SRB) is investing in data analytics and automated systems to track economic activity more efficiently. “These tools are expected to minimise human intervention, reduce tax evasion, and improve ease of payment for citizens and businesses.”

Moreover, partnerships with financial institutions and telecom companies are being explored to enable real-time tax tracking and digital payment solutions, he said, adding that SRB has also pledged to conduct extensive awareness campaigns to encourage voluntary compliance.

Recognising the importance of trust and cooperation, the Sindh government plans to engage with business communities, civil society, and local chambers of commerce. A new feedback mechanism will be introduced to incorporate stakeholder input into tax policy formulation, Farooqi said.

He noted that while the road to expanding tax revenues is challenging, especially amid economic pressures and inflation, Sindh’s proactive approach signals a shift toward a more self-reliant fiscal model. “If implemented effectively, these measures could set a precedent for other provinces and significantly contribute to Pakistan’s broader goal of enhancing domestic revenue mobilisation.”

Credit: INP-WealthPk