Ahmed Khan Malik

The Sindh Revenue Board (SRB) has projected a robust increase of more than 20 percent in tax collection during the current fiscal year, reflecting growing economic activity, improved compliance, and continued reforms in tax administration.

“The optimistic outlook is based on stronger-than-expected collections recorded in the first half of the fiscal year, alongside the expansion of the tax base and enhanced enforcement measures. If achieved, the projected growth would mark one of the strongest annual performances by the provincial revenue authority in recent years,” noted Asim Siddiqui, Member of the Operations and New Initiatives, SRB.

In an interview with Wealth Pakistan, he said the SRB’s revenue inflows have shown steady momentum despite challenging economic conditions, including inflationary pressures and a slowdown in certain sectors. “The trend so far is encouraging. We are confident that with sustained efforts, the board will surpass last year’s collection figures by a significant margin,” he said.

“A key driver behind the anticipated growth is the increased use of digital tools and data-driven audits. Over the past few years, the SRB has invested in automation to streamline tax registration, return filing, and payment processes. These initiatives have not only reduced leakages but have also made it easier for businesses to comply with tax regulations,” he explained.

Asim said the board has also intensified its focus on identifying unregistered service providers, particularly in high-revenue sectors such as telecommunications, banking, logistics, construction, and professional services. He noted that targeted surveys and data-sharing arrangements with other government departments have helped bring thousands of new taxpayers into the net.

In addition to enforcement, the SRB has placed emphasis on taxpayer facilitation and awareness. Helpdesks, online guidance, and outreach programs have been expanded to educate businesses about their obligations under provincial tax laws, he said, adding: “Our strategy balances enforcement with facilitation. Voluntary compliance remains the most sustainable source of revenue growth.”

Asim said the anticipated increase in tax collection is expected to provide significant fiscal relief to the Sindh government, which relies heavily on provincial revenues to finance development projects and social sector spending. “Higher revenues could support increased allocations for health, education, infrastructure, and social protection programs in the province.”

While speaking about improvements in tax administration, he pointed out that broader economic stability will play a crucial role in determining whether the target is achieved. “Tax growth is closely linked to overall economic activity. Continued reforms and policy consistency will be key,” he said.
Asim reiterated that the board remains committed to fair and transparent tax practices and stressed that no new tax measures are planned beyond those already approved in the provincial budget, and that growth is expected primarily from better compliance rather than increased tax rates. “As the fiscal year progresses, the SRB plans to further strengthen monitoring mechanisms and continue engagement with stakeholders”.

If current trends continue, he believed the board is well-positioned to meet—and potentially exceed—its ambitious growth target, setting a positive tone for provincial revenue management in the coming years.

 
Credit: INP-WealthPk