KARACHI: The Sindh Revenue Board (SRB) has announced a major transformation of Sindh’s tax regime, moving from the Positive List of Tariff (PCT) to a Negative List Tariff regime in the current fiscal year 2025-26. This reform marks a significant step toward broadening the tax base and simplifying taxation of services across the province.
According to the SRB’s annual report for FY 2024-25, the Tax Policy Wing examined budget proposals submitted by Chambers of Commerce & Industry, Trade and Taxpayer Associations, individual taxpayers, and internal SRB officers. These proposals were incorporated into the Sindh Finance Bill 2025, which was passed by the Sindh Assembly on June 25, 2025, and assented to by the Governor of Sindh on June 30, 2025.
Under the Negative List Tariff regime, all services are now taxable except those explicitly listed in the exemption schedule, eliminating disputes over tariff or code classification and increasing revenue mobilization. The reform ensures that taxation is more comprehensive and transparent, benefiting both the government and taxpayers.
The Tax Policy Wing is responsible for formulating resource mobilization proposals, suggesting legislative amendments, resolving tax anomalies, issuing clarifications and circulars, and coordinating with the Federal Board of Revenue (FBR), provincial sales tax authorities, and the Council of Common Interest (CCI). The Wing also responds to directives from the Chief Minister and collaborates with the NFC Secretariat to align provincial tax policies with federal regulations.
This shift is expected to enhance compliance, streamline service taxation, and provide clarity for businesses and taxpayers while strengthening Sindh’s fiscal framework.
The Negative List Tariff regime represents a major milestone in modernizing Sindh’s taxation landscape.
