The Tax Reform Unit will be the Government of Sindh's key contributor to the policy making process relating to tax policy and analysis. The objective of the Tax Reform Unit, functioning under the supervision of the Secretary Finance will not only strengthen tax policy and tax administration, but will also ensure a holistic view of Sindh’s tax system.
BACKGROUND
The FD has a formal role under the Sindh Rules of Business, 1986 to provide advice to the provincial government on expenditure and revenue policies in the province. Development of well-informed and evidence-based initiatives for tax revenue mobilization requires institutionalization of capacity for tax analysis in revenue forecasting, tax compliance gaps, compliance and administrative costs, tax expenditure analysis, impact of tax reforms (macroeconomic and operational), among others.
To undertake such research and analysis, the FD has identified the need to create a “Tax Reform Unit” (TRU) under its auspices. This unit will generate data and information, design and implement specific initiatives or measures for raising optimal tax revenue, and orchestrate a tax policy dialogue among the tax administration entities. The institutional arrangement will replace the current practice of setting up incremental revenue targets for the three tax agencies with performance targets that are based on analytic foundations. The unit will work with academic institutions and other specialist institutions to undertake research on tax analysis identified by the TRU.
TRU has been established on 18th July 2014 with following vision and TORs etc:
VISION
Aiming to attain an evidence-based and harmonized tax policy environment enabling efficiency, equity and sustainable growth in tax mobilization that is consistent with sustained economic growth and social development particularly investment, job creation and poverty reduction.
OPERATIONAL MANDATE
The unit will provide critical information and link to its internal customers, the FD, SRB, ET&N, and the BOR as well as academia. Its core value addition would be of being a catalyst in mobilizing research-based studies on tax policy and administration, and policy impact assessments. The scope of studies would focus on taxation polices and administration, identifying new tax avenues, critically evaluating the rationale of existing tax exemptions and sponsoring policy dialogues across stakeholders to create consensus for meaningful tax policy and tax administrative reforms based on evidence-based research.
OPERATIONAL OBJECTIVES
- To improve provincial tax policy and administration based on action research
- To improve policy coordination between the three tax collection agencies and the Finance Department
- To forge effective linkages with academia for evidence-based tax policy and administration
TERM OF REFERENCES
- Assist Finance Department in enhancing policy coordination with the tax collecting department/agencies
- Conduct high quality empirical research and analyses that help tax policy and administration decision-making process
- Coordinate with the tax policy analysts and academic institutions of national and international repute for tax policy research and analyses in the identical areas of tax policy and administration
- Foster wider ownership of the government tax reform initiatives through communication activities
- Collaborate with tax policy analysts, academic institutions, civil society and other relevant stakeholders for development and communication of tax policy and administration reform
- Conduct periodic simulations and modeling of different revenue forecasting and collection scenarios for consideration of revenue collecting agencies through Finance Department
- Based on internal and external research and analysis, suggests means to promote efficiency, effectiveness and transparency in tax policy and administration
- Suggest measurable performance and revenue targets to different revenue collecting agencies through Finance Department
- Coordinate effective implementation of the Sindh Tax Resource Mobilization Plan through Finance Department
- Publish annual report on performance of the Sindh Tax Revenue Mobilization Plan
- Advise Finance Department on improvement of tax policy and statistics
- Any other tax policy or administration reform task that the Government of Sindh may require
REVENUE ANALYSIS
DEPARTMENT-WISE RECEIPTS SUMMARY AGAINST BUDGET AND REVISED ESTIMATES
| DETAIL | 2018-19 | 2019-20 | 2020-21 | ||||
|---|---|---|---|---|---|---|---|
| B.E. | R.E. | ACTUAL | B.E. | R.E. | ACTUAL | B.E. | |
| BOARD OF REVENUE | |||||||
| Tax on Agriculture Income | 2,000 | 2,000 | 578 | 2,240 | 1,200 | 620 | 3,874 |
| Transfer of Property | 3,680 | 3,680 | 2,377 | 5,600 | 5,000 | 1,344 | 5,376 |
| (Registration) | |||||||
| Land Revenue | 650 | 650 | 226 | 750 | 140 | 197 | 750 |
| Capital Value Tax | 5,750 | 5,750 | 3,269 | 7,000 | 4,500 | 2,787 | 6,000 |
| Stamp Duties | 12,075 | 11,100 | 9,934 | 15,000 | 13,000 | 8,654 | 18,000 |
| Sub-total (BOR) | 24,155 | 23,180 | 16,384 | 30,590 | 23,840 | 13,601 | 34,000 |
| Excise & Taxation Department | |||||||
| Property Tax | 4,000 | 3,000 | 2,047 | 3,480 | 3,000 | 425 | 4,000 |
| Professional Tax | 473 | 472 | 408 | 1,000 | 1,000 | 614 | 1,100 |
| Provincial Excise | 6,000 | 6,000 | 5,059 | 7,620 | 6,000 | 4,588 | 7,620 |
| Motor Vehicles | 7,718 | 8,000 | 7,165 | 8,644 | 7,500 | 5,940 | 8,094 |
| Cotton Fees | 300 | 300 | 165 | 556 | 220 | 196 | 556 |
| Infrastructure Cess | 55,000 | 55,000 | 53,039 | 63,100 | 56,866 | 56,714 | 66,000 |
| Entertainment Tax | 100 | 100 | 83 | 300 | 60 | 70 | 300 |
| Other Fees (All Types) | 230 | 200 | 64 | 300 | 90 | 39 | 330 |
| Sub-total (ET&NCD) | 73,820 | 73,072 | 68,030 | 85,000 | 74,736 | 68,586 | 88,000 |
| Sindh Revenue Board | |||||||
| Sales Tax on Services | 110,000 | 110,000 | 93,296 | 135,000 | 125,000 | 99,823 | 125,000 |
| Worker Welfare Fund | 10,000 | 10,000 | 6,195 | 10,000 | 10,000 | 10,000 | |
| Sub-total (SRB) | 120,000 | 120,000 | 99,492 | 145,000 | 135,000 | 99,823 | 135,000 |
| Total | 217,975 | 216,252 | 183,906 | 260,590 | 233,576 | 182,010 | 257,000 |
REVENUE COLLECTION COMPARISON OF RCAS FOR LAST TEN YEARS
| FILE NAME | CLICK TO DOWNLOAD | |
|---|---|---|
| 1 | Sindh Tax Revenue Plan 2014-2019 | Download |