KARACHI, May 28: Sindh Governor Muhammedmian Soomro on Tuesday underlined the need for replacing the outdated system of revenue collection with modern system and directed that all departments responsible for revenue recovery be computerized for better results.

Speaking at a presentation on the provincial excise and taxation department, the governor said the trend of putting obstacles in the tax collection through harassment at the hands of taxation staff should come to an end as it encouraged corruption.

Mr Soomro directed that strict action be taken against corrupt elements besides collecting details of pending cases. He agreed to a proposal seeking help of legal experts for effective handling of the cases.

He was told that in 216 cases of corruption, penalties of varying degrees were imposed on 93 officials, 41 officials

were exonerated from the charge, and cases against 82 officials of the department were pending.

The provincial secretary for excise and taxation, Masood Rahman Masood, made a detailed presentation on the performance and plans of the department.

The meeting was briefed about institutional reforms and rationalization of taxes as under:

* Reduction and simplification of taxes from 15 to 8 by abolishing Bed Tax on private hospitals, Paddy Development Fee, Video Licence Fee, tax on marriage halls, Betterment Tax, surcharge and additional surcharge.

* Property Tax Survey

with around 100,000 new properties coming in the tax net

and revaluation of existing properties @ 20 per cent ARV and its impact on receipts.

* Introduction of flat rate on cinemas with concomitant effects on receipts.

* Reducing categories of hotels for Hotel Tax.

* Relief given to the Hotel Industry in view of international/national situation from September to December, 2001.

* Introduction of sale deeds for transfer of ownership of vehicles.

* Linking of Infrastructure Cess with C&F value of goods.

The meeting was also told that:

1. Property Tax and Entertainment Duty had been devolved to the City/District government.

2. The director for Excise & taxation (taxes-I) re-designated as district officer (Property & Entertainment) and placed with his staff under the control of City government.

3. The offices of ETO (CP) & (Cinemas) placed under the control of district officer (P&E), City government.

4. Amendments in the relevant laws had been notified in the Sindh Law (amendment) Ordinance, 2001.

5. Nomenclatures of existing posts concerning devolved taxes changed as per organograms approved by the competent authority for the city and district governments.

6. The divisional directors (E&T) re-designated as regional directors, E&TD, for assessment and collection of remaining six provincial taxes.

7. Necessary amendments in Sindh Civil Servants (Appointment, promotion & transfer) Rules, 1974 carried out by SGA&CD on Sept 11, 2001 for the delegation of powers to the district/city governments officers.

8. Financial powers stand delegated by the finance department to the city/district government officers.

9. The plan for re-distribution of budget, posts & establishment, approved by the finance department, put in place for implementation.—PPI\APP