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ConsolidatingGrowth

Annual Report 2018 - 2019

Generating Revenue for People

Those who spend their possessions [for the sake of Allah] by night and by day, secretly and openly, shall have their reward

with their Sustainer; and no fear need they have, and neither shall

they grieve.[Al-Quran 2:274]

CONTENTSCONTENTSVision & Mission

Values

Highlights

Chairman’s Message

Board & Senior Management

Organizational Structure

Introduction to SRB

Revenue Spinners

SWWF and SWPF

Expanding Taxpayers’ Base

Taxpayers’ Facilitation

Headquarters Wing

Finance & Admin Wing

HR Wing

Tax Policy Wing

Legal Wing

IT Wing

Audit Wing

Sindh Institute of Fiscal Management

Survey & Development Wing

Acronyms

04

06

07

08

10

12

13

17

31

33

35

37

39

41

45

47

49

51

53

57

60

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 11

Chapter 12

Chapter 13

Chapter 14

Chapter 15

Chapter 16

Chapter 17

Chapter 18

Chapter 19

Chapter 20

Chapter 21

VISIONTo achieve economic prosperity in

Sindh and Pakistan

MISSIONTo create an efficient provincial resource mobilization

system which can fund economic prosperity of the province

Consolidating Growth

ValuesValues

06 Consolidating Growth

ResponsibilityResponsibility is SRB’s core value and it is ingrained in all its policies

and practices. SRB holds itself responsible towards all its

stakeholders: Government of Sindh, taxpayers and its team members.

IntegritySRB and its team members are strongly committed to follow the highest standards of honesty,

fairness and ethics.

DiversitySRB promotes an open culture and celebrates diversity. This provides employees with an opportunity to

collaborate and learn by supporting, recognizing and respecting

contribution of others.

InnovationSRB values proactive solutions and

decision making. Employees are encouraged to share their ideas for

continuous improvements.

Team WorkSRB creates an environment where all employees work with enthusiasm and achieve goals by enjoying individual and collective responsibilities. This

helps maintain teamwork, loyalty and a sense of belonging that ensures

continuous success.

Client SatisfactionSRB works to surpass clients’

expectations by better understanding their needs and offering solutions that

contribute to their success. This also helps in earning clients’ respect, trust and

building long-term relationships.

VALUESSRB’s values are based on its

belief in responding to its stakeholders: Government of

Sindh; taxpayers; and employees.

HighlightsHighlights

07Annual Report 2018-19

NEWREGISTRATIONS

5,225E-SUPPORT

CORRESPONDENCE

21,512

NEWRECRUITMENT

56INBOUND

CALL HOURS

18,161

TRAININGMAN-HOURS

555AUDIT

CASES COMPLETED

92

Annual Report 2018-19

The FY 2018-19 has been a demanding year. Surging current account deficit and exchange & discount rates slowed down the economic growth, exacerbating the challenges faced by tax collecting agencies, including the Sindh Revenue Board. Further blow came from suspension of levy of sales tax on cellular phones during the year, pursuant to an order of the Hon’ble Supreme Court of Pakistan.

Despite impending collection deficit, Sindh government took a conscious decision to maintain the standard tax rate at 13%, the lowest in the country. During the year, SRB collected Rs. 100 billion, which included Rs. 7.13 billion for Sindh Workers Welfare Fund and Sindh Companies Profits (Workers’ Participation). Given the overall business sentiment and its effect on tax receipts, SRB’s performance was not disheartening.

During the year, services involving port and terminal operators, franchise, banks, insurance, contract execution and construction have remained major contributors. A noticeable growth of 24% was recorded in restaurant and café. With an aim to strengthen current operational arrangements and bring the evading service-providers to the tax-net, increased focus was laid on unregistered services.

There have been significant changes in human resource in the past year, carefully overseen by the Board. A group of twelve auditors - CA finalists with sound professional background - were recruited to improve audit function and the organization’s capability to deter misreporting.A batch of 30 new Sindh Sales Tax Officers (SSTOs) was inducted through a competitive selection criteria, administered by IBA - Karachi. This induction is likely to effectively bolster SRB’s field enforcement efforts.

New Auditors and SSTOs were imparted specialized training at Sindh institute of Fiscal Management (SIFM). Besides, training in

general laws, astutely drawn courses on the relevant laws and practices were also taught to the new hires.

A number of trainings were conducted in different cities of Sindh to enhance the understanding of officials including dealing hands from Accountant General Sindh’s office about the provisions under the federal and provincial laws on withholding of taxes. In the year ahead, SIFM looks forward to expanding its capacity to host training programs at larger scales for governmental and non-governmental organizations.

International experts of the World Bank conducted mentoring sessions of Audit Wing on successful conduct of audits. Additionally, a 3-Day training on comprehensive audit was organized to equip audit team with tools and skill sets required to carry out audits in VAT-mode taxation. Important audit cases were reviewed to study the outcomes and deliberate as to how the tools used can be further improved to thwart the possible ingenuity employed for non-compliance and tax evasion.

The Board met regularly, during the year, to address the issues concerning policy and enforcement that the organization was confronted with. Decisions were made to augment institutional capacity in respect of business intelligence, data warehousing, HR and a number of other modules. Most of them are likely to reach their fruition in the FY 2019-20.

The FY 2019-20 will not be less challenging. Unrelenting effort will be required on the part of SRB team to achieve the revenue targets set by the government, besides maintaining the disciplinary work ethics the organization has cared to maintain over the years.

By way of this Annual Report, SRB meets the statutory requirement, besides following its

Chairman’s MessageChairman’s Message



Khalid MahmoodChairman

cherished practice, of presenting its activities and achievements before the Provincial Assembly. We anticipate that the Honorable legislators will continue to guide the organization through their wisdom.

I would like to extend my thanks to SRB taxpayers for their patronage and cooperation.I must also appreciate the contribution of the board-members for the smooth execution of organization’s policies through their indulgence. SRB employees deserve much admiration for the industriousness their work demonstrated, in the face of difficult environment.

Sincere thanks are due to the Hon’ble Chief

Minister Syed Murad Ali Shah for his unwavering support and leadership which phenomenally helped SRB not only to meet its goals but also to maintain an optimum level of fairness and transparency in its working. Principal Secretary and Chief Minister’s office are worthy of our deep appreciation for their continuous support. Acknowledgment is also due to the Finance and other Sindh government departments whose valuable cooperation, over the year, was of immense help.

Mr. Farooq Azam MemonSenior Member (Legal)

Mr. Farooq Azam is serving SRB since February, 2018 as Senior Member Legal. He possesses vast experience of working in various capacities in a number of departments of the Government of Sindh since 1988. He has served as Secretary, Special Secretary, Additional Secretary and Deputy Secretary in departments such as Finance, Planning & Development, Minorities Affairs, Food and Health. He has also been a Member of Sindh Services Tribunal and Chief Minister’s Inspection Team.


Mr. Khalid MahmoodChairman

Board & Senior ManagementBoard & Senior Management

Mr. Khalid Mahmood is currently leading Sindh Revenue Board as Chairman. He has served Federal Government for more than three decades holding senior positions within and outside the country. Key positions held by Mr. Khalid Mahmood included: Managing Director of Overseas Employment Corporation; Member (Technical) Customs Appellate Tribunal; Member HQ and Director General Intelligence & Investigation - FBR; Director, Trading Corporation of Pakistan; Collector Sales Tax & Federal Excise Tax; Chief (Customs) and Chief (Domestic Taxes) FBR; and Pakistan’s Commercial Counselor in South Korea. He has kept himself engaged in various training programs to stay abreast with progressive managerial concepts. Mr. Khalid Mahmood strongly believes in empowering team members and encouraging educated youth to join public sector organizations. Owing to his exposure over the years, Mr. Khalid Mahmood is aware of the issues faced by the businesses in the country. His trade-friendly approach has helped SRB make the strides.

Dr. Noor Alam is a Senior Officer of Provincial Secretariat Services (PSS) Group of Government of Sindh. He holds a (Ph. D) in Public Finance from University Sains Malaysia. Dr. Noor Alam has been working for Government of Sindh since 1988 and has been a policy maker in different capacities. He has served in Finance Department, Government of Sindh, at various positions including: Section Officer; Deputy Secretary; Research Economist; Additional Secretary; Chief Economist; Special Secretary; Secretary (Finance) Sindh; Additional Chief Secretary (Finance) Sindh and is currently engaged as Senior Member (Admin & Finance) at SRB. Dr. Noor Alam worked as the first Secretary of Sindh Revenue Board (SRB) in addition to his own duty of Additional Finance Secretary and remained a focal person of the Task Force on SRB during its creation. He is also Member of the Editorial Committee of European Scientific Journal (ESJ), Member of Working Group-I of European Scientific Institute (ESI), and Associate Editor of Journal of Research in Economics and International Finance. He is currently part of Provincial Working Group of Sindh on National Finance Commission.

Dr. Noor AlamSenior Member (Audit)


Mr. Baqar Naqvi began his career as Assistant Commissioner. He was later promoted to the position of Deputy Secretary and subsequently as Additional Secretary. He is currently engaged as Member – (IT) at SRB. Mr. Naqvi has served in various departments of Government of Sindh including Health, Education and Information Technology. He has also served at the Board of Revenue, Sindh. During his service, he has gained good knowledge and experience in administrative and technological domains. He is an electrical engineer and holds a Master’s degree in Business Administration. He is the only public sector officer in Pakistan who is a Business Intelligence Professional in the IT domain.

Mr. Baqar Abbas NaqviMember (IT)

Mr. Najam Ahmed Shah is from Pakistan Administrative Service and has worked for 20 years in various assignments related to District Administration & Coordination, Procurement & Project Management and Planning & Development. Mr. Najam Shah has served as the Secretary of Specialized Healthcare and Medical Education Department (SHC&MED), Government of Punjab. In 2018, Mr. Najam Shah was appointed as Secretary Finance, Government of Sindh. His major role was to look after resource allocation, mobilization and collection for the whole province. Being Secretary Finance he served as Member of Board (SRB). In March, 2016, he received the “President’s Pride of Performance Award” for his efforts and passionate work.

Mr. Najam Ahmed ShahSecretary Finance


Syed Mushtaque Kazimi has worked with Government of Pakistan for around 40 years and is currently engaged with SRB as Senior Advisor (Tax Policy). In the field of taxation, he started his career as an officer of Pakistan Customs & Excise Service and served in Federal Board of Revenue in different senior positions including: Collector of Customs & Excise in Karachi & Hyderabad; Director General of Training & Research (Customs); Member (Sales Tax) and Member (Technical) in Customs, Excise & Sales Tax Appellate Tribunal. He has also served as tax expert in international assignments on deputation to Zimbabwe in 1982 and Mongolia in 1994.

Syed Mushtaque KazimiSenior Advisor (Tax Policy)


Organizational StructureOrganizational Structure


Secretary

Advisor Training

ProcurementSpecialist

Chief InternalAuditor

Advisor HR

Sr. AdvisorTax Policy

Call Center

SIFM

Chairman

Member ITSenior MemberLegal

Sr. MemberF&A

Member AuditMember Ops

DC

ACs

SupportStaff

Com.

SSTOs

ACs

DCs

Com.

DC

ACs

AO

AAOs

DCs Com.

ACs

Auditors

DC


Annual Report 2018-19 13Annual Report 2018-19

Introduction to SRBIntroduction to SRB

13

Consolidating GrowthConsolidating Growth

About UsAbout Us

Sindh Revenue Board was established under Sindh Board Act, 2010 enacted by Provincial Assembly of Sindh in pursuance of Article 8 of the 7th NFC Award, 2010. SRB was given the task of managing and collecting Sales Taxes on Services levied under Sindh Sales Tax on Services Act, 2011.

In 2016, according to the provisions of the Sindh Workers Welfare Fund Act, 2014 and the Sindh Companies Profit (Workers’ Participation) Act, 2015, SRB was also empowered to collect the contributions to SWWF and SWPF.

Formerly, Federal Board of Revenue (FBR) was also entrusted to collect Sindh Sales Tax levied under the Sindh Sales Tax Ordinance, 2000 upto June 30, 2011. Also, FBR was responsible for collecting Workers Welfare Fund and the Workers Profit Participation Fund in the province of Sindh until the said prominent laws came into operation.

SRB, in its initial years, focused on building and establishing credibility by successfully achieving the assigned targets. Over the years, the revenue targets have increased at a cumulative average growth rate of 26% per annum. SRB has been significantly widening its taxpayer base and developing policies that help to meet the needs of taxpayers and in turn contribute to the prosperity of the Province as well as the Country.

SRB also provides support to the Government of Sindh in regulating tax policy as well as fiscal & economic policies, imposition, levy & collection of taxes and duties in the province of Sindh. The Tax Policy Wing of SRB consistently assists Government of Sindh in matters related to sales tax on services.

To administer and manage revenue collection in the Province, SRB has extended its outreach by opening two regional offices located at Hyderabad and Sukkur. These offices help educate taxpayers and expand taxpayers’ base.

1414


Tax CollectionIn the wake of Article 8 of the 7th NFC Award of 2010, the Provincial Assembly of Sindh legislated the Sindh Revenue Board Act, 2010. Sindh Sales Tax on Services Act, 2011 came into effect from July 1, 2011 repealing Sindh Sales Tax Ordinance, 2000 under which Federal Board of Revenue was entrusted with the task of collecting sales tax on services in Sindh. Sindh Sales Tax on Services Act, 2011 empowers Sindh Revenue Board to levy, collect and administer sales tax on services provided or rendered in the province of Sindh.

With the promulgation of Sindh Sales Tax on Services Act, 2011, sales tax on services in Sindh is no longer governed by the provisions of the Sales Tax Act, 1990 or the rules made thereunder.

Subject to the provisions of Sindh Sales Tax on Services Act, 2011, the tax is levied and collected on taxable services at the rates specified in Schedule II or such other rates as notified with the approval of the Government of Sindh. Registered persons while determining tax liability in terms of the standard tax rate are entitled to claim input tax credits for the tax paid on account of taxable purchases consumed proportionately, as prescribed by the SRB.

Sindh Institute of Fiscal Management (SIFM)Sindh Institute of Fiscal Management (SIFM), was established under the tutelage of SRB with the objective of expanding knowledge base of employees, improving quality of work and preparing a highly skilled workforce. The training facility is located at SRB’s head office.

The Institute has been successfully conducting training sessions with participation from employees of SRB, Government of Sindh and FBR. SIFM has also collaborated with international organizations such as World Bank and International Bureau of Fiscal Documentation to provide international standard training to employees of SRB on subjects related to fiscal and audit issues.

Our MandateOur Mandate


Sindh Sales Tax on Services (SSToS)In pursuance to Article 8 of the 7th NFC Award of 2010, provinces were authorized to collect Sales Tax on Services. SRB came into being in 2010 and was assigned with the task of tax collection effective July, 2011. The statutory standard rate levied on services now stands at 13%, lowest sales tax on services rate amongst all the provinces.

Sindh Workers Welfare Fund (SWWF)To provide for the establishment of a Workers Welfare Fund in the Province of Sindh, Sindh Workers Welfare Fund Act, 2014 and Sindh Companies Profits (Workers’ Participation) Act, 2015 were passed by the Provincial Assembly of Sindh. SRB was entrusted with the task to collect contributions of the said funds from December, 2015. SRB started the collection of these funds at Rs. 0.714 billion in FY 2015-16 and has increased collection of funds to Rs. 7.13 billion for FY 2018-19.

What we collect?What we collect?

Tax Rate Analysis - SRB & Other Revenue Authorities:


DepartmentS. No. Statutory Rate of Tax

1

2

3

17%

16%

15%

15%

13%

4

5

Federal Board of Revenue

Punjab Revenue Authority

Khyber Pakhtunkhwa Revenue Authority

Balochistan Revenue Authority

Sindh Revenue Board

Sindh Sales Tax Rate Analysis - SRB 2011-2019:

16%

15%

14%

13%

12%

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19



Revenue SpinnersRevenue Spinners


Revenue SpinnersRevenue SpinnersIntroductionThe revenue generation in a financial year is a collection of contributions made by large and small taxpayers, as practiced in an equitable taxation system. A total of 87 service categories are levied under the Sindh Sales Tax Service Act, 2011.

FY 2018-19 witnessed Ports, Airports & Terminal Operators emerge as the top tax contributor. The sector showed a growth of 25.5% in comparison with FY 2017-18, posting a collection of Rs. 13.4 billion.

Franchise sector yielded a total of Rs. 8.5 billion, marking its position as the second highest contributor for FY 2018-19. The sector posted 57% increase in tax collection against FY 2017-18.

FY 2018-19 witnessed Banking Sector as third highest contributor. A sum of Rs. 7.7 billion was collected from the sector.

With a collection of Rs. 1.84 billion, Restaurant & Café appeared in the list of top ten contributors for the very first time.


1 Port, Airport & Terminal Operators 2 Franchise

3 Bank 4 Insurance

5 Contract Execution

6 Telecommunication

7 Technical,Scientific & Engineering Consultants

8 Construction

9 Labour and Manpower Services.

10 Restaurant & Cafe

Rs.

13,

462

Rs.

8,5

35

Rs.

7,7

16

Rs.

6,2

39

Rs.

5,7

30

Rs.

5,1

20

Rs.

1,8

40R

s. 2

,858

Rs.

3,1

88R

s. 1

,973

Rs. in million

Ports and Terminal OperatorsWith persistent growth over successive years, Ports and Terminal Operators is the top revenue contributor for FY 2018-19. The sector shows a growth of 26% over FY 2017-18 with a significant collection of Rs. 13.4 billion.

The services provided or rendered by Ports and Terminal Operator are liable to Sindh Sales Tax under tariff heading 9819.9090 of the Second Schedule to the Act. Karachi International Container Terminal, Pakistan International Container Terminal and Qasim International Container Terminal, on-dock or

off-dock terminals or persons carrying out similar activities, including cargo or baggage shed operators, licensed or appointed by the customs authorities at any customs port or station, contribute to Sindh Sales Tax from this sector.

The statutory tax rate on services rendered by Terminal Operators was 16% from FY 2011-12 to 2013-14, which was reduced to 15% for FY 2014-15 and 14% during FY 2015-16. The current statutory rate is 13% which was reduced in FY 2016-17. The Table shows growth in tax collection over the years:

Rs. in million

S. No. FY Collection Increase OverPrevious Year

1

2

3

4

5

6

8

3,425

5,565

4,774

5,929

8,221

9,939

10,721

13,462

-

62%

-14%

24%

39%

21%

8%

26%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7

Top 10 Contributing SectorsTop 10 Contributing Sectors

14,000

12,000

10,000

8,000

6,000

4,000

2,000

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19



Franchise ServicesThe services provided or rendered by persons engaged in Franchise services under tariff heading 9823.0000 is a taxable service. Franchise means any authority given by franchiser including an associate of the franchiser under which the franchisee is contractually or otherwise granted any right to produce, manufacture, distribute, sell or trade or otherwise deal in or do any other business activity in respect of goods or to provide services or to undertake any process identified with the franchiser, whether or not against a consideration for fee, including technical fee, management fee, royalty or such other fee or charges, irrespective of the fact whether or not a trademark, service mark, trade name, logo,

brand name or any such representation or symbol, as the case may be, is involved.

The statutory tax rate is levied at a reduced rate of 10% with the condition that input tax will not be admissible. However, an option is provided to pay sales tax at the statutory rate (now 13%) and claim input tax credit where the franchise services is used for providing or rendering taxable services liable to statutory rate of sales tax.

Marking an increase of 57% over FY 2017-18, Franchise sector stands as second largest contributor for FY 2018-19. A collection of Rs. 8.5 billion has been posted by this sector. The Table shows growth recorded by franchise sector:


Rs. in million


1

2

3

4

5

6

8

521

1,699

1,967

2,996

3,705

4,526

5,431

8,556

-

226%

16%

52%

24%

22%

20%

57%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7

6000

7000

8000

9000

5000

4000

3000

2000

1000

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19

Banking ServicesThe services provided or rendered that are liable to SST as defined under section 2(28) of the Sindh Sales Tax on Services Act, 2011 are: banking companies; corporate finance societies; leasing companies; foreign exchange dealers; non-banking financial institutions; and other persons dealing in any such services. The mark-up or interest charged by the Banks from its customers are excluded from the perview of tax.

The statutory rate imposed in FY 2011-12 was

16%. With an annual reduction of one percent from FY 2013-14 to FY 2015-16, the statutory rate stands at 13%.

The banking sector has been one of the consistent top ten contributors in SRB’s revenue generation. FY 2018-19 has witnessed banking sector as third highest contributor with a growth of 2% over FY 2017-18 and a collection of Rs. 7.7 billion. The Table shows the trend of tax collection from banking services:

Rs. in million


1

2

3

4

5

6

8

2,608

3,158

3,957

4,737

6,260

6,122

7,551

7,698

-

21%

25%

20%

32%

-2%

23%

2%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7

7,000

8,000

6,000

5,000

4,000

3,000

2,000

1,000

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19

21Annual Report 2018-19Annual Report 2018-19


Insurance ServicesThe services of insurance and re-insurance are taxable at the standard rate of 13% under tariff heading 9813.1000 (and its sub-headings) to the Second Schedule to Sindh Sales Tax on Services Act, 2011. Health insurance services, marine insurance services for exports, crop insurance services and individual persons’ life insurance for policy coverage of upto 5 lac

rupees are exempt. Life insurance policies (other than group life insurance policies) for individual persons are levied at the reduced rate of 3%.

The sector has posted a growth of 3% in FY 2018-19 over FY 2017-18, achieving a contribution of Rs. 6.2 billion. Over the course of eight years, the amount collected from this sector is shown in the Table:


Rs. in million


1

2

3

4

5

6

8

3,229

4,218

4,479

4,582

4,777

7,935

6,040

6,239

-

31%

6%

2%

4%

66%

-24%

3%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7

7,000

8,000

6,000

5,000

4,000

3,000

2,000

1,000

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19

Contractual Execution of Work and Furnishing-SuppliesThe services provided or rendered under Contractual Execution of Work or Furnishing Supplies is a taxable service under tariff heading 9809.0000. This sector covers such services that are not specifically described in the First Schedule to the 2011-Act and are also not specified or described as such in the Second

Schedule, but are provided or rendered or supplied under a contract including an Agreement or a Purchase/Supply Order or against a tender.

At a statutory rate of 13%, this sector has made a contribution of Rs. 5.7 billion for FY 2018-19 against Rs. 5.6 billion collected in FY 2017-18. The Table depicts growth trend of this sector:

Rs. in million


1

2

3

4

5

6

8

304

459

965

3,247

4,949

4,852

5,635

5,703

-

51%

110%

236%

52%

-2%

16%

1%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7

5,000

6,000

4,000

3,000

2,000

1,000

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19



Telecommunication ServicesTelecommunication Services including bandwidth services, telegraph, internet, data communication, network services, value added data services, audio text services, vehicle & other tracking services, alarm services and international incoming call services are chargeable sales tax under tariff heading 98.12 and the sub-heads thereof. The statutory rate applied for said services stands at 19.5% for FY 2018-19.

The suspension of Sindh Sales Tax on prepaid and postpaid cellular mobile operators services vide Supreme Court's order dated June 11, 2018 and October 16, 2018, caused a major setback in collection of revenue from this sector during FY 2018-19. The loss of revenue is estimated approximately at Rs. 10 billion.

The Table highlights the tax collection over the course of eight years:

Rs. in million


1

2

3

4

5

6

8

8,645

10,669

10,241

6,224

7,003

8,867

12,934

5,115

-

23%

-4%

-39%

13%

27%

46%

-60%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7

10,000

12,000

14,000

8,000

6,000

4,000

2,000

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19



Technical, Scientific and Engineering ConsultantsThe services provided or rendered by technical, scientific and engineering consultants are taxable at standard statutory rate with effect from July 1, 2014 under tariff heading 9815.5000.

Persons who are involved in providing or rendering technical, scientific and engineering service, advice, consultancy, assistance or supervision to any person, in one or more disciplines of technology, science and

engineering and a person known as a consulting engineer or professional engineer for the purpose of the Pakistan Engineering Council Act, 1975 (Act No. V of 1976) or known as a structural engineer for the purpose of the Sindh Building Control Ordinance, 1979 (Sindh Ordinance No. V of 1979) are covered under the aforesaid service description.

The contribution made by this sector in FY 2018-19 is Rs. 3.2 billion which shows a growth of 29% over FY 2017-18. The revenue growth of this sector is displayed in the Table:

Rs. in million


1

2

3

4

5

2,522

1,947

2,361

2,464

3,189

-

-23%

21%

4%

29%

2017-18

2016-17

2015-16

2014-15

2018-19

2,500

3,000

3,500

2,000

1,500

1,000

500

014 - 15 15 - 16 16 - 17 17 - 18 18 - 19


Construction ServicesThe services provided or rendered by persons engaged in construction services under tariff heading 9824.0000 is a taxable service and is liable to Sindh Sales Tax at 8% without input tax credit and an optimal rate of 13% (with input tax credit facility) subject to the condition/limitation mentioned under rule 42B of Sindh Sales Tax on Services Rules, 2011.

Services provided or rendered by persons engaged in Construction Services, where the total value of such work does not exceed 4 million rupees in a financial year, are exempt from the levy of Sindh Sales Tax. The threshold is

not related to each and every individual contract for construction but is applicable to the annual turnover of the person providing or rendering such services. Construction of private residential house of individual(s) having total covered area not exceeding 10,000 sq.ft. is exempt.

The Court judgment on Association of Builders & Developers case challenging levy on construction, property and developers, etc. has had negative impact on the revenue collection from this sector. SRB’s appeal against the said judgement is pending in the Supreme Court of Pakistan.

The Table represents the revenue collection trend of this sector:

2,500

3,000

2,000

1,500

1,000

500

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19


Rs. in million


1

2

3

4

5

6

8

20

73

512

1,167

2,167

3,160

3,244

2,859

-

265%

601%

128%

86%

46%

3%

-12%

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

7



Labor & Manpower Supply ServicesLabor & Manpower Supply Services are defined as the services provided or rendered by persons to another person, for a consideration or for use of the services of a person or individual, employed, hired or supplied by him. This sector is taxable from July 1, 2013 under tariff heading 9829.0000.

With a collection of Rs. 1.9 billion, Labor & Manpower Services has posted a growth of 27% in comparison with FY 2017-18 and maintained its position amongst top 10 contributors in revenue collection.

The Table demonstrates the growth of this sector:

2,000

1,500

1,000

500

017 - 1816 - 1715 - 1614 - 15 18 - 1913 - 14


Rs. in million


1

2

3

4

6

142

256

350

394

1,550

1,974

-

80%

37%

13%

293%

27%

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

5

Restaurant and CaféThis sector includes restaurants, café, coffee houses, ice cream parlors, etc. where food, beverages or other edible preparations are sold or served to customers. The services of this sector are taxable since July 1, 2011 under tariff heading 9801.2000.

The contingent exemption, vide notification No. SRB-3-4/7/2013, dated 18-06-2013, has been provided to Restaurants and Café whose

turnover does not exceed 4 million rupee in any financial year.

Yielding a growth of 24%, this sector has emerged as one of the top contributor for the first time. The revenue collected in FY 2018-19 stands at Rs. 1.8 billion in comparison to Rs. 1.4 billion collected in FY 2017-18. The Table demonstrates the year on year growth made by this sector:

Rs. in million


6

598

1,133

-

12%

2011-12

2016-17

5 1,011 2%2015-16

4 989 16%2014-15

3 851 25%2013-14

2 683 14%2012-13

8 1,825 24%2018-19

1

1,467 29%2017-187


1,400

1,600

1,800

2,000

1,200

1,000

800

600

400

200

011 - 12 12 - 13 13 - 14 14 - 15 15 - 16 16 - 17 17 - 18 18 - 19

FY 2018-19 accounted for a collection of Rs. 9.73 billion from withholding agents, not rendering taxable services under the Act, 2011 but receiving or procuring taxable services.

Organizations which are funded, fully or partially, out of budget grants of federal or provincial governments are termed as Withholding Agents. These include offices and departments governed by federal government, provincial government and local or district government, autonomous

bodies, public sector organizations including public corporations, state-owned enterprises and regulatory bodies and entities.

Withholding Agents also include companies, defined in clause (28) of section 2 of the Act, 2011, FBR-registered or SRB-registered persons or persons specified in sub-rule (2) of rule 1 of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014.

Withholding AgentsWithholding Agents


1 Advertisement 2 Goods Transportation3 Government Withholding 4 Contract Execution 5 Others 6 Construction 7 Technical, Scientific & Engineering Consultants 8 Advertising Agents 9 Labor & Manpower Supply Services 10 Freight Forwarding

19%

17%

18% 14%

10%

8%

7% 4% 2%

1%

Top 10withholding

sectors


The table demonstrates category-wise contribution:

S. No. Service Category Amount in Rs.(million)

1

2

Government Withholding 1,4373

Advertisement

4

Goods Transportation

5

Contract Execution

1,621

1,470

1,145

6 Construction

7 Technical, Scientific & Engineering Consultants

8

9

639

559

304

184

1,005

Labor & Manpower Services

Advertising Agents

Others

10

11

12

13

14

15

16

17

18

19

20

21

22

97

105

71

78

65

51

76

84

77

54

50

54

Custom Agents

Freight Forwarding

Stevedores

Security Agencies

Business Support Services

Production Houses

Ports, Airports & Terminal Operators

Testing & Lab Services

Commission Agents

Courier Services

Caterers

Software & IT Consultants

23

Contractors of Building

24

25 Maintenance & Cleaning Services

26 Hotels

27

28

29

Management Consultants

30

31

32

33

34

35

36

37

38

39

40

67

33

33

40

77Janitorial Services

21Franchise

Renting of Immovable Property Services

Event Management

31

25

26

21

22

16

14

11

15

14

13

17

8

Erection, Commission & Installation Services

Auditors & Accountants

Rent a Car & Automobile Rental Service

Toll Manufacturing

Telecommunication

Architects

Market Research Services

Recruiting Agents

Electrical Workshops

Other Consultants

Auto Workshops

Total 9,730


SWWF and SWPFSWWF and SWPF

31Annual Report 2018-19 31


IntroductionWorkers Welfare Fund (WWF) was established under the Sindh Workers Welfare Fund Act, 2014, (Sindh Act No. XXXIII of 2015, hereinafter referred as Act, 2014) to provide for establishment of a Workers Welfare Fund for workers in the province of Sindh.

Sindh Companies Profits (Workers’ Participation) Act, 2015 (Sindh Act No. XVIII of 2016, hereinafter referred as Act, 2015) replaced the Federal Law of Companies Profits (Workers’ Participation) Act, 1968, to the extent of its application in Sindh.

Constitution of FundWorkers Welfare Fund (WWF) constituted under section 4 of the Act, 2014, consists of: contribution made by Government; funds received from industrial establishments under the Sindh Workers Welfare Fund Act, 2014; leftover amount transferred to the Fund in respect of Workers Participation Fund under the Sindh Companies Profits (Workers’ Participation) Act, 2015; and other voluntarily contributions by stakeholders.

Utilization of FundFunds gathered under section 8 of Act, 2014, are applied to finance projects related to establishment of housing estates or construction of houses, flats or educational institutions or hospitals, development of plots for workers and financing of other measures for welfare of workers and their dependents.

Requirement of Contribution to be paid by Industrial EstablishmentsAny concern engaged in manufacturing or producing articles in the province of Sindh is liable to pay 2% of profit before taxation, as Workers Welfare Fund. It is also liable to pay the leftover amount of fund (fund created as 5% of profit before taxation) after distribution of the said fund

amongst workers, as Workers Participation Fund. The leftover amounts of Workers Participation Fund, on being so deposited, become a part of the Workers Welfare Fund in terms of section 4 of the Act, 2014.

Progress during FY 2018-19Sindh Revenue Board has attended all meetings of the Sindh Workers Welfare Board and has actively participated to ensure that the intent and purposes of SWWF and SWPF are implemented for the declared objective i.e. welfare of the workers in Sindh.

SWWF Unit of SRB organized an event with the Employer Federation of Pakistan at Sindh Institute of Fiscal Management (SIFM) to engage the leading employers of Pakistan for addressing the issues in payment of Sindh Workers Welfare Fund. The meeting was very useful and highly appreciated by the employers’ federation and members.

Online Sindh Workers Welfare Fund portal has been launched to collect data of the registered fund payers in Sindh Revenue Board and their payment record of SWWF and SWPF.

First ever relief package from wavier of penalty and interest was introduced in June, 2019 with the approval of the Sindh cabinet. The package was availed by several industrial establishments and undertakings. The general body of the contributors appreciated the initiative in this regard.

Collection Progress during the FY 2018-19During FY 2018-19, Sindh Revenue Board collected Rs. 7.13 billion in Sindh Workers Welfare Fund. Despite litigations and simultaneous collection enforcement by the FBR in the province of Sindh, SRB managed to pull-in more collection than Federal Board of Revenue.

Rs. in million

2017-18 2018-19

FBR

SRB

4,186

7,132

16,789

7,907

Comparison of collection with Federal Board of Revenue (FBR):

SWWF and SWPFSWWF and SWPF


Expanding Taxpayers’ BaseExpanding Taxpayers’ Base



The taxpayer base at SRB has been broadening significantly over the years. For both equity and efficiency purposes, SRB pursues policies to strengthen and expand the effective tax base and include more small and medium enterprises (SMEs).

Since inception of SRB, the number of registered persons has been growing impressively. A total of 28,481 taxpayers are registered at SRB. In spite slow economic activities, SRB was successful in registering a total of 5,225 new taxpayers in FY 2018-19.


551AOP(S)

5,225New

Registrations

3,711Individuals

963Companies

Registrations for FY 2018-19:

Expanding Taxpayers’ BaseExpanding Taxpayers’ Base

Taxpayers’ FacilitationTaxpayers’ Facilitation

Annual Report 2018-19 3535Annual Report 2018-19

Taxpayers’ FacilitationTaxpayers’ FacilitationCall Center plays a vital role in taxpayer facilitation in relation to e-registration and e-filing of monthly sales tax returns. Call Center also helps taxpayers in e-payments and to update online registrations and tax profiles which include changes in particulars and answering taxpayers queries relating to tax matters. Call Center assists and facilitates taxpayers for tax compliance, which strengthens SRB’s robust collection system.

SRB also uses Customer Relationship Management (CRM) software to manage Inbound and Outbound calls. It helps the Call Center agents to record accurate and relevant customer’s queries and deals with the complaints and claims of the customers by forwarding online/telephone calls to respective officers of SRB.

Telephonic AssistanceThe goal of the call center is to resolve issues during the first interaction. This includes resolving queries and ambiguities related to e-registration, e-filing and other tax related procedures.

*UAN: 111-778-000

e-RegistrationThis involves giving approval to new registration after verification, scanning and attachment of documents. To register and join SRB’s taxpayer community, guidance and assistance is also provided to interested individuals, AOPs and companies.

*Online Portal: e.srb.gos.pk

e-FilingCall Center provides support to taxpayers in filling Declaration Form/Return Filing. Guidance is also provided for filing quarterly and yearly statement specifically for Banking Sector.


Information Alongside e-support mail system, emails of taxpayers are also received via info email address of SRB. A total of 853 emails were received and entertained in FY 2018-2019.

*Email: [email protected]

TechnicalComplaintsCall Center provides support in resolving complains related to e-SRB portal. Furthermore, continuous efforts in collaboration with PRAL are made to improve and enhance taxpayer facilitation.


Walk-in TaxpayersCall Center also facilitates walk-in taxpayers. Support is provided to taxpayers who wish to meet SRB’s representative in person.

e-PaymentTaxpayers are assisted by Call Center for creation of e-Payment challan and preparation of Payment Slip Identifier (PSID) challan.


Updating Tax ProfilesCall Center also provides assistance in updating and changing particulars in profiles of taxpayers as per their request.


e-Support Mail SystemCall Center regularly receives queries through e-support mail system. In FY 2018-19, a total of 21,512 e-support mail were received and responded.



Headquarters WingHeadquarters Wing


Headquarters WingHeadquarters WingHeadquarters (HQs) Wing takes responsibility for successful coordination of SRB with provincial and national stakeholders and also ensures compliance with corporate governance.

Managing Board MeetingsHQs Wing coordinates with all SRB Wings and compiles agenda items for the board meetings to address important policy matters and solicit decisions. The Wing also ensures that the minutes of meetings are recorded accurately and approved by its Members.

Issue Notifications, Rules, Public Notices & CircularsNotifications, Rules and Public Notices/Circulars passed by the Board and the management in

accordance with Sindh Sales Tax on Services Act, 2011 are issued by HQs Wing.

Coordination with Provincial Assembly HQs Wing ensures coordination with the Provincial Assembly secretariat over various matters including assembly questions, adjournment motions, select committees and Public Accounts Committee (PAC).

Interprovincial MeetingsTo ensure coordination and harmony over tax related matters, regular meetings are held amongst provincial revenue authorities. Interprovincial meetings held in Sindh are organized and coordinated by HQs Wing of SRB.

38 Consolidating GrowthConsolidating Growth


Finance & Admin WingFinance & Admin Wing



Finance & Admin Wing ensures support and cooperation is extended to employees at all levels.

Rotation and TransfersTo enhance employee capacity and provide them with an opportunity to gain insight into working environment of all departments, it is ensured that required interdepartmental employee rotation takes place. Finance & Admin Wing is responsible for the smooth and timely implementation of all rotations.

SRB Employees’ Welfare FoundationFinance & Admin Wing provides support to SRB employees through SRB Employees’ Welfare Foundation. The Wing carefully evaluates all cases and recommends the same on the basis of merit to the competent authority.

Enhancing Financial ProcessesAll financial matters relating to employees and vendors are effectively monitored to ensure both, compliance and facilitation.

Contracts And MoUsTo cater to multiple needs of the organization, numerous MoUs and contracts are executed to run various functions smoothly. The Wing ensures timely execution of all MoUs and Contracts.

Health InsuranceFinance & Admin Wing extends 24/7 support to SRB employees in case of medical emergencies and coordinates with health insurance service provider to ensure that high-class medical assistance is available to employees round-the-clock.

Inventory ManagementInventory is being regularly monitored to ensure proper provision of items required for the smooth functioning of SRB offices at all three locations.

Maintaining EquilibriumFinance & Admin Wing maintains a work environment where employees across the organization are treated with equality, justice and fairness.

Finance & Admin WingFinance & Admin Wing


HR WingHR Wing

41Annual Report 2018-19 41Annual Report 2018-19

HR WingHR WingHR supports employees by encouraging a positive and engaging work environment while identifying and responding to the changing needs of the organization.

Recruitment Recruitment of Auditors To strengthen and enhance tax audits, twelve tax auditors have been hired. These auditors hold knowledge of core audit functions and possess experience of working with reputed audit firms. The recruitment has enabled SRB to audit taxpayers’ returns for revenue generation and ensure compliance with laid down laws.

Hiring of Sindh Sales Tax Officers A batch of 30 young graduates was recruited as interns to be regularized as Sindh Sales Tax Officers subject to successful completion of their internship. The candidates underwent a rigorous testing process comprised of screening examination by Sukkur IBA, aptitude test and group discussion by IBA, Karachi followed by a panel interview conducted by senior officials of SRB and the Government of Sindh.

The new recruits were equipped with specialized training on tax administration and revenue generation at SIFM.

HR Regulations SRB has always taken keen interest in the development of employees and is continuously engaged in improving the working conditions and reforming the existing policies as well as development of new regulations in relation to human resource development. Significant progress has been achieved in reforming policies and regulations.

HR Automation In line with SRB’s vision of leveraging information technology for increasing efficiencies, the Human Resources Wing has embarked on automation of its processes. Based on updated employee data, the Wing has launched an Employee Self Service (ESS) Portal. Further automation projects currently under way will be completed in 2019-20.


WorkingStrength

285Chairman

Executives

Ancillary

1

217

63

4

Senior Management



Education DiversityEducation Diversity

90

80

70

60

50

40

30

20

10

0

MBA/MPA/M.Com/MA/M.Sc/MS/MCS/M.E/LLM

BBA/BPA/B.Com/BA/B.Ed/B.Sc/Bs/BCS/BE/BSCS/BSIT/LLB

ACCA//CA Finalist/CA/ICMA/ACMA/FMCA/FCCA

Master Graduates ACCA FCMA FCCA ACMA CA LAW MBA


55%

35%

10%

Qualification

Gender DiversityGender Diversity

44 Consolidating Growth Annual Report 2018-19

Annual Report 2018-1907 Consolidating Growth

Tax Policy WingTax Policy Wing



Tax Policy WingTax Policy WingTax Policy Wing deals with Sindh Sales Tax on Services (SSToS) policies which include formulation of resource mobilization for the annual provincial budget, amendments in the Sindh Sales Tax on Services Act, 2011, in the Sindh Sales Tax on Services Rules, 2011 and in the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014 and various other Rules and Notifications.

Tax Policy Wing also examines various tax and exemption related proposals from Chambers of Commerce & Industry, Trade/Taxpayers’ Associations and taxpayers. After review, Tax Policy Wing sends its opinion and comments to the decision-makers. Directives related to tax matters received from Chief Minister Secretariat are also examined and processed by Tax Policy Wing. Tax Policy Wing also issues Rules, Clarifications, Notifications, Circulars and Standing Orders for taxpayers and tax collectors including resolution of disputes and removal of doubts. The Wing also works in close coordination with various Government departments in the Province of Sindh, in the Federation and in other provinces.

Discourse With Taxpayers & Taxpayers’ Associations Numerous meetings were held during FY 2018-19 with various taxpayers and Taxpayers’ Associations including meeting with the SITE Association of Industries, American Business Council, Overseas Chamber of Commerce & Industry, Karachi and Hyderabad Chamber of Commerce & Industry, etc., for resolution of taxation issues faced by their members.

Tax Policy Wing also attended Advisory Meeting held by Federal Board of Revenue on taxation issues between FBR and Provincial Revenue Authorities. Issues related to Implementation of STRIVe, Single Portal, Single Tax Return, etc., were also discussed. A Coordination meeting of

Provincial Authorities is held in the headquarters of each Provincial Sales Tax Authority. Such meetings are attended by the Tax Policy Wing. Issues of Negative List, Digital Economy, Sales Tax on Telecom Sector etc., were harmonized deliberated upon at length in such Inter-Provincial Coordination Committee Meetings.

With a view to resolve multiple inter-provincial issues (i.e. double taxation, origination & destination issue, STRIVe, Bancassurance Services, etc.,), Tax Policy Wing also attended an Inter-Provincial Tax Authorities Coordination Committee Meeting, convened by the provinces.

A National Tax Conference held in Islamabad was also not only attended by officers of the Wing, a representative also participated as a panelist on the topic “Harmonization of Taxes” in the Conference.

Resource Mobilization Proposals For The Sindh Budget, 2019Tax Policy Wing examined and formulated views, comments and recommendations on the budget proposals for 2019-20 received from Chambers of Commerce & Industry (i.e. KCCI, OICCI, etc.), Trade and Taxpayers’ Associations (i.e. Pakistan Hotels Association, Pakistan Banks Association, TAAP, etc.) and individual taxpayers. Tax Policy Wing also held meetings with FPCCI, KCCI, TAAP, OICCI, etc., and drafted Resource Mobilization Proposals 2019-20 and submitted it to the Finance Department, Government of Sindh.

Resolving Complaints And Redressing GrievancesBesides redressing several issues and grievances received via SRB’s helpline, e-mails and phones, Tax Policy Wing has also resolved public complaints received on Prime Minister’s sponsored “Pakistan Citizen’s Portal” marking “NIL” pendency at the closing of FY 2018-19.

Taxpayers’ Facilitation:

Discoursewith

TaxpayersResolving

ComplaintsRedressingGrievances


Legal WingLegal Wing


Legal WingLegal WingThe Legal Wing looks after Court matters/litigation and offers complete support to Operations and other Wings of Sindh Revenue Board in all legal matters, particularly drafting or pleading in courts. The Legal Wing also deals with internal legal matters.

The Legal Wing coordinates with Provincial Government Departments, such as Law Department, Advocate General Sindh, Prosecution Department, Provincial Assembly as well as external counsels engaged by SRB for representing cases in High Court of Sindh, Lahore High Court and Supreme Court of Pakistan.

Legal Wing comprises of a Commissioner (Legal), a Deputy Commissioner (Legal), three dedicated Law Officers and support staff.

In the matter of greater importance i.e. constitutional issues and matters involving critical question of law and involving considerable amount of revenue, SRB engages external

counsels on a need basis to defend the cases at courts. As a result of such active and aggressive pursuits, Legal Wing has disposed of 269 cases out of 488 filed in the FY 2018-19.

The success of the Legal Wing is owed to effective internal control, liaison and coordination among Operations, Tax Policy, Audit and Finance & Admin Wings.

The Legal Wing also imparts regular training to employees of SRB in coordination with SIFM.

The Legal Wing faces challenges due to lack of Benches of the Honorable Sindh High Court in tax matters, especially for the Constitutional Petitions and Special Sindh Sales Tax Reference Applications. Only one division bench of the Court is functioning for last two years and hearing all the tax matters including federal and provincial taxes. Constitution of special bench for Sindh Sales Tax matters shall enhance efficiency of the department and enable it to recover revenues held-up due to litigation.


Filed Cases488

Disposedof Cases269

CPs312

HCA99

STRA62


IT WingIT Wing


Achievements of IT WingAchievements of IT WingIT wing has been providing continuous support to enhance effectiveness and functioning capacity of SRB. IT Wing has made considerable efforts in meeting evolving needs that drive rapid improvement across the organization, raise productivity and help in managing arising challenges. A secure and reliable technological infrastructure has been built to support SRB’s day to day activities with special focus on advancing and modernizing tax administration.

IT Wing promotes innovative use of technology, ensures availability of high quality services and required support to run technological equipment & applications.

Besides providing technological support to SRB, IT wing has also extended its service to Federal Government by helping improve features of National Single Window and to National Bank of Pakistan (NBP) by resolving ADC E-Payment Server issues.

ComplaintManagement

System

Employee SelfService (ESS)Application

ContractManagement

System

Sales Tax InvoiceManagement

System (STIMS)

SurveyManagement

and ReportingTool (SMART)

Home of SalesTax on Services

(HOSTS)

Tax Recovery &Information

ManagementSystem (TRIMS)

FutureAssigned

SupervisoryTask (FAST)Application

Development of

IT WINGat a Glance

50 Consolidating GrowthConsolidating Growth


Audit WingAudit Wing



Audit WingAudit WingTo foster voluntary compliance, Universal Self-Amnesty scheme is practiced in taxation system of Pakistan. This empowers taxpayers to self-assess their income & tax liability and pay outstanding amount voluntarily. Tax Audit is conducted to examine and monitor voluntary compliance; it helps to understand if self-assessed tax liability and adjustments incurred are correctly reported for the period under audit.

Audit Wing once again successfully met all targets of Disbursement Linked Indicators (DLIs) set by World Bank through Third Party Validation (TPV). Tax auditors carefully examined and analyzed complex documents such as financial statements and other documents maintained u/s 26 of the SSTOS Act, 2011.

Twelve auditors were hired to enhance the effectiveness and working capacity of the Wing. The batch underwent specialized training organized by SIFM. Along with this, mentoring sessions were also conducted by World Bank to assist and equip the Wing with audit tools and contemporary audit techniques. Staff also participated in various in-house training programs to enhance technical knowledge and competencies required to effectively run audits.

212 new cases have been recommended for audit for FY 2019-20 as per the risk criteria approved by World Bank. SRB management in collaboration with World Bank will maintain its focus on the Wing with the objective of making it more effective and efficient in performing its functions.

Progressive position of all audits undertaken as ofJune 30, 2019:


Audit Reports Finalized

92

58 56

4211

1479

2,885

Contravention Reports (C/Rs) sent to Operations Wing for

adjudication/recovery proceedings under law

Amount Adjudged as recoverable (Rs. in million)

Amount recovered post-adjudication

(Rs. in million)

Revenue short-fall detected (conveyed vide C/Rs) and

currently under adjudication (Rs. in million)

Total number of Audits

undertaken

Cases where Recovery Orders

passed

Amount recovered pre-adjudication (Rs. in million)

Sindh Institute of Fiscal ManagementSindh Institute of Fiscal Management



The decision to establish Sindh Institute of Fiscal Management (SIFM) was taken in the Second Advisory Council Meeting held in September, 2013 chaired by the Honorable Chief Minister of Sindh. The Institute started its operations in August, 2017 with the primary objective of capacity building of officers of SRB as well as the Government of Sindh.

During FY 2018-19, SIFM organized training sessions on thirteen subjects including Star Lecture Series in which prominent trainers and speakers shared their views with SRB officers.Significant focus was placed on the Audit function in FY 2018-19. Besides organizing a specialized training program for newly hired Auditors, three sessions were organized in collaboration with the World Bank. These included two mentoring sessions and one workshop on Comprehensive Audit.

A three-day workshop entitled Professional Manager was organized for Cluster Heads, some of whom were made responsible for leading a team for the first time.

A month-long specialized training program was organized for 30 newly hired interns who may be regularized as SSTOs, subject to successful completion of all requirements as laid down by SRB. The training consisted of three key modules: Taxation and Law; Information Technology; and Self-Management. Emphasis was laid on Taxation and Law in which eight subjects were taught including: Constitution of the Islamic Republic of Pakistan; Sindh Sales Tax on Services Act, 2011; Sales Tax Act, 1990; and Quasi-Judicial Function & Legal Issues.

An important development in FY 2018-19 was the training provided to over 150 officers of the Government of Sindh on the subject of “Deduction of Sindh Sales Tax Amount from Expenditure Bills of Government of Sindh Departments”. The training was imparted not only in Karachi but also in eighteen different cities of Sindh.

Sindh Institute of Fiscal ManagementSindh Institute of Fiscal Management


Number of TrainingPrograms

26

Specialized TrainingPrograms for New Hires

3

InternationallyCollaborated Trainings

8

Trained Participants fromGovernment of Sindh

150

SIFM

July20, 2018 Star Lecture Series: Lecture 1

Star Lecture Series: Lecture 2Aug

30,2018

Professional ManagerSep 3-5,

2018

Star Lecture Series: Lecture 3Oct 26,2018

Banking Industry PracticesNov 14 &22, 2018

Comprehensive Audit WorkshopNov 19-21,

2018

Mentoring of SRB Audit Wing OfficersNov 26 - Dec

7, 2018

Specialized Training for AuditorsDec 24 - Jan

7, 2019

General Training Course for New SRB Interns (SSTOs)Feb 1 -

28, 2019

Use of HOST (SRB’s internal portal) and SCN applicationMar 12 -14, 2019

Mentoring of SRB Audit Wing OfficersMar 18 -25, 2019

Workshop on Deduction of Sindh Sales Tax Amounts fromExpenditure Bills of Sindh Government Department

Mar 19 - Apr17, 2019

Video Tutorials for Automated Show-Cause Notice Portal (TRIMS)June 15 -30, 2019


Survey & Development WingSurvey & Development Wing

57Annual Report 2018-19Annual Report 2018-19 57


Survey & Development WingSurvey & Development WingSince its establishment as an independent Wing in the third quarter of 2017-18, Survey & Development has focused on increasing SRB’s taxpayer base. The registration of new tax-payers is based on information obtained from external and internal sources.

S&D Wing has expanded tax-base by registering unregistered service providers.

The Wing initiates investigations of cases that are under process with concerned units or Commissioner Appeals, Appellate Tribunal, etc. Proper surveys and investigation of said cases are conducted and reports based on evidence collected during investigation are submitted. Cases investigated during FY 2018-19 are given in the table.

S. No. Commissionerate No. of Cases

Commissioner-I

Commissioner-II

Commissioner-III

Commissioner-IV

1,688

1,449

120

487

1

2

3

4

Total 3,744

S&D

FBR Associations

SRB portal& othersSECP


Information flow chart

S&D at a GlanceS&D at a Glance

FBR, SECPAssociation,SRB Portal

& Other Sources20,000

Companies/AOP's/ Individuals

Analyzed

Investigated 3,744

Un-registeredPersons Relevant

to Sindh

505 Marriage Halls

403 Consultancy

Services

2,530 Other Sectors

188Construction

Services

118 Cateringand Event

Management


AcronymsAcronyms


1. SRB: Sindh Revenue Board

2. FBR: Federal Board of Revenue

3. SIFM: Sindh Institute of Fiscal Management

4. SWWF: Sindh Workers Welfare Fund

5. SWPF: Sindh Companies Profits(Workers’ Participation) Act

6. FY: Fiscal Year

7. SST: Sindh Sales Tax

8. HR: Human Resources

9. DLI: Disbursement Link Indicators

10. IBFD: International Bureau of Fiscal Documentation

11. VAT: Value Added Tax

12. STIMS: Sales Tax Invoice Management System

13. IT: Information Technology

14. CMS: Complaint Management System

15. SCN: Show Cause Notice

16. S&D: Survey & Development

17. AOP: Association of Persons

18. SECP: Securities and Exchange Commission of Pakistan

19. DCs: Deputy Commissioners

20. ACs: Assistant Commissioners

21. Com.: Commissioners

22. AO: Accounts Officer

23. AAOs: Assistant Accounts Officers

24. SSTOs: Sindh Sales Tax Officers


Shazia Khushk (1970 - Present)Shazia Khushk was born at Jamshoro and emerged as a prominent singer of Sindhi language. She has performed Sindhi music widely.

Mai Bhagi (1920 - 1986)Mai Bhagi is considered as one of the greatest female voices from Sindh. With her authentic and natural voice, she has sung many beautiful Sindhi sufiana & arfana Kalam and folk songs.

Ustaad Juman (1935 - 1990)A musician and classical singer, whose impact on Sindhi

music is still pervasive. Ustaad Juman has composed Kalams of various sufi saints of Sindh.

Allan Faqeer (1932 - 2000)Allan Fakir was born in the village of Aamari in Jamshoro District. He was particularly known for his ecstatic style of

performance, marked with extreme devotional rhetoric and sufi dance-singing.

Amjad Farid Sabri (1970 - 2016)He was a qawwal, naat khawan and a proponent of the sufi Muslim tradition. In 2018, Sabri was posthumously awarded the Sitara-i-Imtiaz – Pakistan's third highest civilian honor.

Abida Parveen (1954 - Present) Her singing and music has earned her many accolades, and she has been dubbed as the 'Queen of Sufi Music'.

SINDH REVENUE BOARD6th Floor, Shaheen ComplexM.R.Kayani Road, Karachi-74200. T: +92-21-99217800-09 UAN: 111-778-000E: [email protected] W: www.srb.gos.pkGenerating Revenue for People

They reached who shifted their gaze from this world for thatperfect beauty and perfect wisdom, Lord is away from them just a step

(Bhittai)

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