Karachi: The Sindh government has announced a 20% increase in sales tax on services collected during the first half of the going fiscal year (FY) 2019-20, a news source reported. To this effect, the provincial sales tax figures were seen to reach PKR 110 billion in the said period.
As per the publication, the Ministry of Finance stated that all the four provinces collected PKR 92 billion sales tax on services during the first half of the previous fiscal year (FY 2018-19).
Balochistan announced a 95% increase in sales tax collection with the total amount of PKR 4.54 billion as opposed to PKR 2.33 billion in the corresponding half of FY 2018-19. Khyber Pakhtunkhwa registered 83% growth in its revenue collection to PKR 8.16 billion as compared to PKR 4.46 billion previously collected.
The revenue collection of Sindh province jumped 8.63% from PKR 43.42 billion during the last fiscal year to PKR 47.17 billion during the first half of FY 2019-20. Punjab exhibited a 21% increase in revenue collection and accumulated PKR 50 billion in July-December of the present fiscal year as compared to PKR 41.42 billion in the corresponding half of the last fiscal year.
According to officials, the Federal Board of Revenue (FBR) needs to gather PKR 5.238 trillion in the current fiscal year. The target has been revised downward from PKR 5.503 trillion. The taxation agency is anticipating a shortfall of about PKR 750 billion during FY 2019-20 owing to the current state of the country’s economy.