KARACHI: The Board of Revenue, Sindh, has reported 48 per cent shortfall in revenue from property registration, and 41pc shortfall in collection from stamp duty and capital value tax (CVT) charged on property transactions during the first eight months (July-Feb) of this fiscal year.

The data released by the BOR indicated that actual receipts in property registration stood at Rs687.1 million during the period against the budgeted target of Rs1.333 billion.

Similarly, collection from CVT was Rs1.374bn against the target of Rs2.333bn. Stamp duty revenue fell to Rs3.893bn against the target of Rs6.552bn.

Sources at the Stamp Duty directorate told Dawn that the revenue targets have been raised manifold for the year in question, while administrative steps which could have considerably boosted revenue have not been taken over the years.

The valuation table for properties had also not been revised since 2010 and stamp duty was being collected on lower rates, adversely affecting the revenue, they said.

Another reason for less collection of revenue, they added, is that the categories of immovable properties have not been revised since 1986.

Similarly, the value of produce index unit (PIU) of agriculture land has been stagnated at Rs300 whereas the federal government has already notified the value of PIU at Rs2,000. The Sindh government has yet to approve a law in the assembly to implement the new PIU value.

The sources pointed out that the finance department has been successively raising the revenue target for stamp duty over the years from Rs6.552bn in 2010­11 to Rs5.952bn in 2012, Rs6bn in 2013, Rs6.417bn in 2014 and Rs9.828bn in 2015.

Published in Dawn, April 19th, 2015

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