Karachi: The Sindh Revenue Board (SRB) has officially transitioned Sindh’s tax structure from the Positive List of Tariff (PCT) system to a comprehensive Negative List Tariff regime for fiscal year 2025-26. The move is aimed at broadening the provincial tax base, simplifying service taxation, and enhancing revenue collection.
According to SRB’s annual report for FY 2024-25, the Tax Policy Wing reviewed budget proposals submitted by various Chambers of Commerce & Industry, trade bodies, taxpayer associations, individual taxpayers, and internal SRB officials. These recommendations were incorporated into the Sindh Finance Bill 2025, which was approved by the Sindh Assembly on June 25, 2025, and later received assent from the Governor of Sindh on June 30, 2025.
Under the newly adopted Negative List Tariff regime, all services are deemed taxable unless specifically exempted in the schedule. This approach eliminates recurring disputes over tariff classifications and service codes while ensuring a more transparent and comprehensive taxation framework.
The SRB’s Tax Policy Wing plays a key role in drafting resource mobilization strategies, proposing legislative amendments, resolving tax anomalies, and issuing clarifications. It also coordinates closely with the Federal Board of Revenue (FBR), provincial sales tax authorities, the Council of Common Interests (CCI), and the NFC Secretariat to align Sindh’s tax policies with federal regulations.
Tax experts believe this shift will strengthen compliance, streamline service taxation, and provide greater clarity to businesses operating in Sindh. The Negative List Tariff regime marks a significant milestone in modernizing the province’s fiscal framework and reinforcing revenue sustainability.
