Sindh Board of Revenue Struggles with Revenue Recovery Targets

The Sindh Board of Revenue has encountered difficulties in meeting its revenue recovery targets over the past three years. From 2020–21 to 2022–23, the Board was tasked with recovering Rs100,640 million but could only manage to collect Rs48,526 million, resulting in a significant shortfall of Rs52,114 million. In response to this shortfall, the Sindh Chief Minister has directed the Board to consider reintroducing abolished taxes and enhancing the e-stamping system to boost revenue collection.

During a recent meeting chaired by the Chief Minister, it was revealed that the Board of Revenue had collected only 33.57% of its Rs55,218 million target for the current financial year. Additionally, water rate recovery stood at a mere 9.2%, with Rs74.540 million collected against a target of Rs805.309 million.

Furthermore, the Agriculture Income Tax (AIT) collection was at 44.82% of the Rs2,723 million target, while stamp duty collection reached 33.24% of the Rs36,787 million target. The Chief Minister highlighted the need to lower the AIT exemption threshold from 1.2 million to 0.4 million to align it with the Federal Board of Revenue standards and suggested extending the assessment period to six years.

Moreover, the Chief Minister emphasized the importance of digitizing manual crop inspection, assessment, and collection processes to enhance efficiency. The Board attributed the shortfall in stamp duty collection to the overall economic conditions affecting property transactions across the country.

In conclusion, the Sindh Board of Revenue faces significant challenges in meeting its revenue recovery targets, prompting the need for strategic reforms and technological advancements to improve performance and enhance revenue collection efficiency.