Provincial revenue plan relies on stronger compliance and digital enforcement to reach Rs690bn tax goal.
Image: ProPakistani
The Sindh government has set a target of Rs450 billion from the Sindh Sales Tax on Services for fiscal year 2026–27, as it seeks to strengthen its own-source revenue and reduce dependence on federal transfers.
According to the budget speech, the projection marks a significant increase from revised estimates of Rs388 billion for 2025–26 and Rs284.22 billion collected in 2024–25, highlighting an aggressive revenue expansion strategy.
Overall provincial tax revenue is projected at Rs690.06 billion, driven largely by the services tax, alongside contributions from excise duties, stamp duty, motor vehicle taxes and other levies.
The government expects improved compliance and digital enforcement by the Sindh Revenue Board to help broaden the tax base across sectors including IT, banking, telecom, logistics and real estate.
Total provincial revenue, including taxes and non-tax income, is estimated at Rs775.06 billion, while federal transfers are projected to lift overall receipts to about Rs3.03 trillion.
Despite higher revenue expectations, development spending has been reduced, even as allocations for education and health remain significant priorities in the fiscal plan.
Economists say the ambitious services tax target will depend on economic stability, enforcement capacity and smooth implementation across the services sector.
