KARACHI: The Sindh government has raised infrastructure cess rates by 10 per cent to generate additional tax revenue.
The new finance bill provides that the rates of infrastructure cess, which is charged on all imports landing in the province by sea and the airport will range from 1.10pc to 1.15pc of the value of goods depending on the weight of the consignment and distance it covered to reach its final destination.
The levy was introduced to meet high cost incurred on maintenance of roads and law and order arrangements made for the safe passage of imported consignments.
The cess is the major revenue spinner of the provincial government. It collected Rs2,8838 million under this head in the previous year. Director-General Excise and Taxation Shabir Shaikh estimated that the changes in cess and other tax rates made in the new budget are likely to yield an additional Rs4bn.
The Sindh government has also slapped 10pc surcharge on property units which fail to pay tax during the assessment year. The move is aimed at discouraging the non- filers or property owners not paying tax in time. The old system of rebate on timely payment of property tax has been revived.
Accordingly, owners of property units who pay tax during the first quarter of the assessment year will get 5pc rebate on the tax amount.
However, the budget makers rejected the proposal to increase professional tax from Rs2,500 to Rs5,000 on CNG pumps.
The excise department collected Rs3,9441m from July-May FY16, a rise of Rs836m compared to a year ago.
The 11-month revenue of the department meets 94pc of the annual target of Rs41785m. The department hopes to surpass the target by June 30, 2016.
The data of other tax collection shows that the motor vehicle registration fetched Rs4,683m during the period under review. The excise duty contributed Rs3635m while property tax fetched Rs1,782m. The department plans to expand its tax network during the new financial year by building new tax offices in five districts.
An extensive survey of property units and businesses has been planned with the World Bank assistance to enlist new units.
The survey to be conducted by a third party will start from Sukkur and would climax in Karachi after covering major Sindh towns.
Another ambitious scheme planned for the new fiscal year envisages introduction of on-line registration of vehicles and payment of road tax by motorists through ATM , internet and private banking channels.
Published in Dawn, June 19th, 2016
