Sindh Revenue Board surpasses target with record Rs370bn collection in FY26

ISLAMABAD: The Sindh Revenue Board (SRB) collected a record Rs370.064 billion in fiscal year 2025-26, exceeding its annual target of Rs362bn by nearly Rs8bn, according to provisional figures released by the board on Wednesday.

The latest collection marked a 20.17pc increase from Rs307.930bn raised in the previous fiscal year. The SRB is tasked with collecting sales tax on services, the Workers Welfare Fund, the Sindh Companies’ Profits Workers’ Participation Fund, and agricultural income tax in the province.

Sales tax remains main source of revenue

A breakdown of the figures showed that collections under the Sindh Sales Tax (SST) rose to Rs344.602bn in FY25-26, up 21.2pc from Rs284.377bn a year earlier. SST remains the board’s main source of revenue and the principal area for which the SRB was established.

Revenue collected under the Sindh Workers’ Welfare Fund (SWWF) and the Sindh Companies’ Profits Workers’ Participation Fund (SWPF) reached Rs24.435bn during the year, compared to Rs22.253bn in the preceding fiscal year, reflecting growth of 10pc.

The board also collected more than Rs1bn in agricultural income tax during FY25-26. However, that was below the annual target of Rs6bn for the newly assigned levy.

June posts highest monthly collection

SRB Chairman Wasif Ali Memon said the fiscal year ended strongly, with June alone bringing in Rs45.08bn, the highest monthly collection since the board’s inception. He said this was 28.3pc higher than the Rs35.15bn collected in May.

Memon said the board delivered strong results despite low economic growth and the adverse effect of regional conflict on revenue collection in the latter half of the financial year. He attributed the outcome to the "hard work and unwavering dedication" of the SRB workforce, as well as support from the Sindh government and the trust and cooperation of taxpayers.

The chairman said the SRB team intended to build on the pace of revenue growth in FY26-27 while addressing challenges related to expanding the tax base, improving voluntary compliance and speeding up digital transformation in tax administration.

Push for stronger provincial revenue collection

In June, a day before the presentation of the Sindh budget for FY26-27, Chief Minister Syed Murad Ali Shah directed major revenue-generating departments to strengthen collection systems and improve fiscal efficiency in support of the province’s development agenda.

The previous month, the federal government had asked provinces to raise their revenue contribution by at least Rs400bn in the new fiscal year through more effective collection in agriculture, property and services. The requested increase was nearly 40pc of the provinces’ existing share and was aimed at helping the country remain in the good books of the International Monetary Fund.