Sindh govt collects Rs312 bn against Rs618.9bn annual target showing 37% growth

Sindh govt collects Rs312 bn against Rs618.9bn annual target showing 37% growth

KARACHI (March 25): Sindh Chief Minister Syed Murad Ali Shah chaired a meeting to review the mid-year tax collection performance and found that against a target of Rs618,966 million, the provincial government agencies have recovered Rs312,000 million during the last eight months of 2024-25, indicating a 37 per cent growth compared to last year and achieving 50.41 per cent of the target.

The meeting held at CM House was attended by Minister Excise & Taxation Mukesh Kumar Chawla, PSCM Agha Wasif, SMBR Baqaullah Unar, Secretary Finance Fayaz Jatoi and Secretary Excise Saleem Rajput and others concerned.

During the briefing, it was reported that the provincial tax collecting agencies have been assigned a target of Rs 618,966 million for the 2024-25 fiscal year. The provincial government agencies were expected to collect Rs 412,644 million during the eight months (July 2024 to Feb 2025); however, the actual collection was recorded at Rs 312,000 million. This figure represents 50.41 per cent of the target but shows a growth of 37 per cent compared to last year's (2023-24) collection of Rs 227,313 million.

To a question, the CM was told that the collection improved tremendously during the last quarter of the financial year.

Excise & Taxation: The Excise & Taxation dept collects six taxes/duties, including Infrastructure Cess, Motor Vehicles tax (MVT), Excise Enactment (EE), Professional tax, Cotton Fee and Entertainment Duty.
All six taxes collective collections come to Rs175,509 against a target of Rs152,405 million (up to March 2025), which is 86 per cent of its annual target of Rs203,206 million.

The Infrastructure Cess annual target is Rs170,185 million, with a recovery of Rs154,635 million, reflecting a 91 per cent collection rate. The MVT target is Rs15,974 million, against a recovery of Rs12,514 million, indicating a 78 per cent recovery rate. The EE target is Rs13,923 million, while the recovery stands at Rs6,554.5 million, or 47 per cent. The professional tax collection target is Rs2,597 million, and the collection is Rs1,635 million, which equates to 62 per cent. The cotton fee target is Rs377 million, with a recovery of Rs93 million, representing 25 per cent. The Entertainment Duty target is Rs150 million, and the recovery is Rs77 million, or 51 per cent of the annual target. In other words, the overall recovery of the Excise and Taxation Department is Rs175,509 million against an annual target of Rs203,206 million, constituting 86 per cent of the annual target.

Sindh Revenue Board (SRB): The SRB has set a target of Rs 350 million for the fiscal year 2024-25. As of March 25, it has collected Rs 204,630 million in Sindh Sales Tax (SST), compared to Rs 162,362 million during the same period last year. This reflects a growth of 26 per cent.

Board of Revenue (BoR): The Board of Revenue has been given a target of Rs 60,700 million. So far, it has collected Rs 17,436 million, which represents a growth of 38.96 per cent compared to the collection of Rs 12,548 million during the same eight-month period last year (up to March 15).

The BOR collects Tax on Agriculture Income which has been given to the Sindh Revenue Board recently, Transfer of Property tax (Registration), Land Revenue, Capital Value Tax, and Stamp duty.