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Sindh Revenue Board Government of Sindh

Generating Revenue for People

Copyright © 2015. Sindh Revenue Board

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SRB’s Perspective

SRB Tax Forum 2015

Hotel Marriott Karachi

Tashfeen K. Niaz Chairman

8th April 2015

Copyright © 2015. Sindh Revenue Board



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



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.




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.




Our Motivation

عقابباِد مخالف سے نہ گھبرا اے تندئ

یہ تو چلتی ہے تجھے اونچا اڑانے کے لیے





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.




The only tax authority to

To reduce the statutory standard rate of SST from 16% to 15%.



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.


Introducing the negative list concept of taxation instead of Schedules for taxation,



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.




Our Achievements


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.



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.




Work with the Stakeholders

Copyright © 2015 Sindh Revenue Board 13

Taxpayers

Government at all levels

Trade Bodies

International Agencies

Regulatory Bodies

Employees



Establishment and Performance


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..




Sales Tax on Services Collection FY 2010 thru 2015




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



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%



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.


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



Strategic Vision (from 2014-15 to 2017-18)




SRB Strategic Goal & Performance at a Glance


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



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


* Current Year



SRB is gearing up to a challenge of collecting

Rs. 100 BN by the fiscal year 2017-18.


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.



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


Strategic Direction to improve the following areas:



Important Work in Progress Currently some very important work at SRB is in progress which includes the

following:


• 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.




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.



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.




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.




Thank You




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


mailto:[email protected]

mailto:[email protected]

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