KARACHI - Rejecting the demand to waive off or reduce the tax, the Sindh government has warned all the private security agencies to get registered their companies with the Sindh Revenue Board and ensure payment of GST on services to the provincial government. This was decided at a high level meeting regarding general sales tax/levy of security agencies, chaired by Sindh Chief Minister Syed Qaim Ali Shah at CM Secretariat here on Tuesday.
Regretting the demand of private security agencies either to waive off or reduce the sales tax on services from 10% to 2%, the Chief Minister Sindh said that Sindh government has already reduced their tax from 16% to 10% despite the fact that it was experiencing financial constraints due to ongoing targeted operation being carried out in the Karachi with the support of federal government. “It was not my prerogative to reduce the sales tax which already incorporated into finance bill and passed by the Sindh Assembly”, Chief Minister declared while rejecting the demand of the private security agencies.
He directed the authorities of Sindh Revenue Board to bring all the business companies/agencies into tax net and to surpass their recovery target of Rs42 billion as they did in last year by recovering Rs34 billion against the target of Rs 32 billon.
Chief Minister asked the office bearers of all Pakistan Private Security Agencies Association to get their all member agencies registered with Sindh Revenue Board (SRB) and pay their taxes accordingly.
He said that since these private security agencies are generating the employment opportunities we have already reduced the sales tax from 16 to 10% to encourage them. CM further said that because of giving priority to law & order, the current annual expenditure of Sindh government is being raised from Rs15 billion to Rs60 billion. He said that though we are enjoying the support of force from federal government but still waiting for the financial assistance of Rs10 billion from federal government announced earlier in this regard. Chief Minister Sindh Syed Qaim Ali has Shah said that law & order was at the top priority of his government for which huge investment is being made to maintain it and provide peaceful atmosphere to the people of Sindh including Karachi and business community. He said that expenditure on law and order is expected up to Rs 60 billion only this year because of ongoing targeted operation being carried out against terrorism, extortionists and kidnapers in Karachi and vowed that his government will not hesitate to spend more to protect the lives and properties of the people. Advisor to CM for Finance Syed Murad Ali Shah said that no earning entity would be spared from tax net as it was firm decision of Sindh government.
He said that those who are earning in the province shall have to contribute in the development in the shape of taxes, adding that private security agencies have been now converted into professional business and we cannot spare such a huge area of earning from recovery of taxes. He, however, said there are certain other means by which government can encourage this investment. Chairman Sindh Revenue Board Tashfeen while briefing the meeting informed that out of 237 private security agencies working in the province, only 100 have got themselves registered with his organization. He said that sales tax of Rs79 million so far has been collected from these private security agencies.
He said that as compared to 16% sales tax levy on services being charged by Punjab government, only 10% are being charged by Sindh Government from private security agencies. He asked the Association of Private Security Agencies to get their other members registered with his organization in the interest of this province and welfare of common man.