Sindh Revenue Board posts record Rs.9.5bn arrears recovery in Feb 2026

KARACHI: The Sindh Revenue Board (SRB) has recorded strong growth in tax collection, driven by a record recovery of arrears and reforms aimed at widening the tax base, officials said after a review meeting chaired by the chief minister of Sindh, Syed Murad Ali Shah.

At a meeting at the Chief Minister’s House, the Sindh chief minister reviewed the SRB’s performance and outlined a roadmap for further reforms for the 2025–26 fiscal year.

The Chairman of SRB, Wasif Memon, told the meeting that SRB recovered Rs.9.5 billion in arrears in February 2026, helping push the month’s total tax collection to Rs.34.86 billion, a 41 per cent increase from Rs.24.66 billion in February 2025.

From July to February of FY2025–26, cumulative SRB collections reached Rs.225.65 billion, up 24 per cent from Rs.182.6 billion in the same period last year.

SRB chairman Wasif Memon told the meeting that the board had achieved a historic revenue of Rs. 306.6bn in FY2024–25, including Rs. 284.4bn from Sindh Sales Tax on Services (SST), a 29.5 per cent increase from Rs. 237bn collected in the previous year.

The meeting was also informed that June 2025 saw the highest monthly collection in SRB’s history, exceeding Rs. 40.5 billion, the largest amount since the authority began operations about 15 years ago.

According to the briefing, several service sectors remained the main contributors to provincial revenue.

The ports, airport and terminal operators sector generated Rs.40.2 billion, followed by telecommunications with Rs. 24.2 bn and banking with Rs.20.34 billion.

Other strong performers included the Banking sector (Rs20.34 billion), Franchise services (Rs17.53 billion) and Insurance (Rs14.56 billion).

The meeting was informed that the top ten sectors collectively contributed Rs155.6 billion, while 27 additional service sectors generated more than Rs1 billion each, indicating a broad and diversified tax base.

Some sectors recorded particularly rapid growth during the year.

Software and IT consultancy services grew by 49 percent, goods transportation by 50 percent, and technical and engineering consultancy by 44 percent.

The funds and asset management sector entered the list of top contributors for the first time, recording 162 percent growth and generating Rs.5.76 billion.

Regional offices also reported strong results. The Hyderabad commissionerate collected Rs.20.9 billion, marking 38 percent growth, while the Sukkur and Larkana commissionerates together collected Rs.11 billion, showing 41 percent growth.

Chairman SRB said the increase was due to improved monitoring of high-risk sectors, expanded taxpayer facilitation, recovery drives and enhanced digital utilisation.

The meeting was informed that Rs.48.42 billion was collected through withholding agents during FY 2024-25, compared to Rs. 37.43 billion in the previous year.

Authorities said automation of Sindh sales tax deductions through the government’s financial systems had improved transparency and compliance.

The meeting was also told that collections under the Sindh Workers Welfare Fund (SWWF) and Sindh Workers Participation Fund (SWPPF) also recorded strong growth.

The SWWF wing collected Rs22.25 billion in FY 2024-25, surpassing the revised target of Rs20.2 billion and showing 55 percent growth despite legal and regulatory challenges.

Speaking at the meeting, the chief minister of Sindh, Syed Murad Ali Shah, praised SRB’s performance but said further reforms were needed.

“The Sindh Revenue Board has demonstrated consistent progress over the years. Crossing the Rs.300bn mark is a significant achievement,” he said.

He directed the board to expand the tax base, bring undocumented service providers into the tax net and strengthen enforcement against tax evasion, while ensuring taxpayer facilitation.

The chief minister also emphasised greater use of digital tools and data-driven monitoring to support sustainable revenue growth and fiscal stability in the province of Sindh.