KARACHI: Sindh’s tax revenue increased by Rs950 million, or 5.8 per cent, to Rs16.4 billion during the first half of 2014-15 from Rs15.5bn last year.

Faulty computerisation system and the change of Excise and Taxation department’s secretary in December are believed to be the main reasons for modest growth.

According to the data issued this week, collection from property tax declined by 17pc to Rs1bn in July-Dec 2014-15 from Rs1.2bn last year.

The highest jump, Rs770m, was recorded in collection from infrastructure cess charged on imports landing at Karachi and passing through the province. The cess revenue rose to Rs11.46bn from Rs10.7bn earlier.

Duty collection on excisable items, mainly liquor, and confiscation of contrabands worth millions of rupees boosted excise duty to Rs1.4bn during the period, a rise of Rs247m compared to last year.

Revenue from motor vehicle registration, MVR, rose by Rs83.8m to Rs1.85bn from Rs1.7bn. However, the increase failed to live up to tax collectors’ expectations, and the less-than-expected collection has been mainly attributed to the abnormal increase in withholding tax on vehicle registration by the Federal Board of Revenue from July.

A senior department official said the political instability and the bad law and order also adversely affected the collection from motor registration as the department was forced to postpone its yearly snap checking drive which yields considerable revenue every year.

Collection from professional tax stood at Rs185m during the period against Rs175m earlier.

Cotton fee fetched Rs173.8m against Rs165m last year, and entertainment duty generated Rs22.4m compared to Rs18.8m.

The new secretary for excise and taxation, Dr Bader Jamil, was not available for comments.

It seems the Sindh government is short of officers having knowledge of tax matters as the new secretary has been transferred from the women development department.

As a result of frequent bureaucratic reshuffle, the World Bank has postponed its project to undertake a survey of properties in urban and rural areas of the province to bring new units in the tax net. The survey was to start from Sukkur from January 2015.

Published in Dawn, January 25th, 2015

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