Sindh has secured the top position among all provinces in Pakistan for sales tax on services collection during the fiscal year 2024-25, showcasing both a significant increase in revenue and a strong growth rate.
According to data from the federal finance ministry, Sindh collected a total of Rs284 billion in FY25, a remarkable 27.50% increase from the Rs222.75 billion collected in the previous fiscal year. This performance has cemented Sindh’s role as the leading contributor to the national sales tax on services revenue.
Collectively, the four provinces generated Rs612.42 billion in sales tax on services during FY25, representing a 21.36% rise from Rs504.62 billion in FY24. Sindh’s share of this total collection was a substantial 46.37%, an increase from 44.14% in the prior year.
Following Sindh, Punjab collected Rs264 billion, marking a 17.63% growth from Rs224.44 billion in FY24. Khyber Pakhtunkhwa’s collection reached Rs41 billion, a 14% increase from Rs36 billion, while Balochistan saw a 7% rise, collecting Rs23 billion compared to Rs21.52 billion.
Under the Constitution of Pakistan, the authority to collect sales tax on services rests with the provinces, while the federal government is responsible for sales tax on goods. Sindh’s robust performance in FY25 highlights its flourishing service sector and effective tax administration, setting a high standard for other provinces to follow.
