HYDERABAD, July 16: The City taluka council on Saturday imposed a tax on towers of different cellular phone companies in various parts of the city.

In a session, the council also passed a budget of Rs406.464 million for the 2006-07 year.

Convenor Shabbar Ali Chishti presided over the session.

The total expenditure has been estimated at Rs406.464 million against expected receipts of the same amount.

The imposition of the tax on cell phone towers would lead to an expected income of Rs1.8 million to the taluka municipal administration as the companies were not paying any tax to the TMA.

No other TMA has levied such tax in the district.

City Taluka Nazim Javed Jabbar said that an amount of Rs15 million from various government departments had been recovered.

Of total income of Rs406.464 million, the TMA would be delivered its share of octroi and district tax which was estimated at Rs256.930 million and it was to be utilised for salaries of its employees.

Other receipts included taxes of Rs20.255 million, Rs8 million from the Sindh government under the Sindh Devolved Social Services Programme, rent of Rs15.620 million and an amount of Rs1.235 million under miscellaneous heads which included fines, tenders fees and sale of unused items.

Under the self-finance scheme of the city shopping centre, bus terminal and the Gari Khata shopping centre, the TMA intended to earn Rs37.416 million, Rs29.5 million and Rs10 million, respectively.

Out of the total expenditure, the TMA reserved Rs77 million for development, Rs256.930 million of salaries, Rs614.89 million for revenue and capital expenditures, unforeseen expenses of Rs1.5 million and Rs1.4 million for scholarship.

The taluka nazim said that TMA employees would get more incentives which included allocations of Rs600,000 for scholarships for employees’ children adding that loan for employees had been increased to Rs2 million while Rs500,000 were allocated for the employees who die during discharge of their official duty.

He said that the TMA’s only source of income was contracts and rent of properties and by July 1 all contracts had been auctioned in a transparent manner which would earn the TMA an amount of Rs10 million— a record income so far. He said that till the last month, Rs10 million had been recovered in properties’ rent.

Out of Rs77 million development programme, Rs16.5 million would be used for construction of roads, Rs3.5 million for parks, Rs10.5 million for drains, Rs500,000 for gutter cross, Rs5 million for construction of the Qilla stadium and Rs1.5 million for construction of Eidgah.

An amount of matching grant of Rs8 million has been allocated for citizen community boards.

Summing up the debate, Dr Ayaz Arain called for accelerating the pace of recoveries by the TMA staff.

It was proposed that for emergency relief an amount of Rs500,000 should be allocated instead of Rs300,000.

Grants of needy persons was increased to Rs300,000.