A fter receiving the go-ahead signal from the centre to collect general sales tax (GST) on services, the provincial government has paced up the establishment of Sindh Revenue Board (SRB) for collecting the tax under the 7th National Finance Commission (NFC) Award, it has emerged.
The formation of an administrative setup of the provincial tax collecting body was suspended for a period of one year while the Sindh government had allowed the centre to collect taxes through the Federal Board of Revenue (FBR).
Well-placed sources in Sindh Finance Department told Pakistan Today that the SRB is likely to start functioning after the announcement of the budget for next fiscal year starting from the month of June, and the proposed tax reforms conditioned by the International Monetary Fund (IMF).
In this regard, the SRB recently invited ‘Expression of Interest’ proposals from firms interested in developing a web-based system for management of sales and other taxes in the province. The internet portal would cater to e-filing returns, registration and collection of sales tax and other taxes/levies and their deposit in specified accounts, along with all intermediary steps and report generation.
With its new offices on the 9th Floor of Shaheen Complex near the II Chundrigar Road, the new board would also have a proper budget allocation in the upcoming budget for financial year 2011-12, so that taxes can be collected from July 2011.
After consensus on 7th NFC Award and 18th Constitutional Amendment, the federal government had transferred the rights of collecting GST on services to the provinces. However, the provincial authorities of Punjab, Khyber Pakhtunkhwa and Balochistan had allowed the centre to collect the taxes, citing lack of proper mechanism for the job.
The Sindh province remained firm on its stance over the trights of taxes and decided to work out its own tax-collecting mechanism in the province. The provincial government established the SRB, within the Finance Department’s Resources Wing, appointing former federal sports secretary Nazar Mahar as the chairman.
Surprisingly, the board’s formation was suspended by the authorities concerned for a period of one year, as reservations of the provinces on some major services could not be removed.
Only FBR should collect taxes, SRB has no efficiency at all.
For Sindh Government this new department comes for corruption because the authorites means Maher is Chairman and he is too much old retired person and he comes for glories and taken 2 – 3 lac salary and they will appoint same corrupt persons from the request of MPA's MNA's and their castes. means SBR is no more work to return taxes.
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