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KARACHI, Nov 19: In a move that is likely to further burden the common man already paying a large number of provincial and federal taxes, the administrations of the majority of the city’s 18 towns plan to impose new taxes to generate revenue for various development projects under their jurisdiction.
This revenue is expected to be generated through taxes levied, amongst other areas, on marriage halls, the sale and purchase of immovable property, burial in graveyards managed by towns and CNG/petrol service stations.
Town councils are given the power to levy such taxes and fees by Section 116 of the Sindh Local Government Ordinance 2001 (SLGO-2001). According to the second schedule of the ordinance, town councils may impose a local tax on services, fees on the sale of animals in cattle markets, market fees, taxes on the transfer of immovable property, fee on fairs, agricultural shows, cattle fairs, tournaments, industrial exhibitions, and other public events organised by the town, fee on licences, permits and penalties or fines for violations, collection charges for the recovery of any tax on behalf of the government, fees on cinemas, dramas, theatre, other forms of entertainment and their tickets, rent for land, buildings, equipment, machinery and vehicles, in addition to fees for specific services rendered by a town, fees for the approval of building plans and the erection or re-erection of buildings with the approval of the city government, and taxes on vehicles other than motor vehicles registered in the town.
All of the city’s towns already charge one per cent tax on each transaction of immoveable property in their jurisdiction, while a tax on marriage halls is also in place in the majority.
The nazim of Gulshan town, Wasey Jalil, told Dawn that the Gulshan town council recently allowed the town administration to levy a Rs1,000 tax on each marriage ceremony. “However, the tax will be imposed only after getting the public’s view on the proposal,” he said.
Advocate Arif Khan, the nazim of Korangi town, said that no additional taxes were currently being levied but added that the town would soon introduce taxes aimed at broadening the revenue base, including a tax on marriage ceremonies.
Osama Qadri, the Liaquatabad town nazim, said that the town was charging each marriage hall Rs8,000 per month. “A tax on the sale and purchase of immoveable property was also imposed, as well as Rs500 in taxes for each burial in the town-maintained graveyards,” he informed Dawn.
According to North Nazimabad town nazim Mumtaz Hameed, a tax on marriage halls is already in place. The town is also going to impose a tax on petrol pumps, CNG and service stations in its jurisdiction.
Saddar town nazim Mohammed Dilawar said that the town administration had a number of plans for new taxes to be spent on development projects.
Mohammed Kamal, the nazim of Gulberg town, said that a tax on marriage was already in place, while the town council recently passed a resolution concerning the imposition of a Rs5,000 monthly tax on each petrol pump, CNG and service station. Pointing out that Landhi town was charging Rs100,000 per annum from gas stations within its jurisdiction, Mr Kamal defended the imposition of new taxes and maintained that the administrations need more revenue to initiate, complete and maintain development projects. He told Dawn that the town administration would be responsible for the carpeting of roads near gas and service stations. “The maintenance of streetlights, sewerage-related work and cleanliness around petrol pumps and service stations is our responsibility, which we are fulfilling,” he said. “But this work requires extra funds and we have therefore imposed taxes which will be spent on such projects.”
According to Mr Jalil, the nazim of Gulshan town, the revenue collected from the taxes would be spent on the people living in the area. “The marriage lawns generate extra garbage and our staff is responsible for proper disposal,” he pointed out. “We need funds and therefore imposed the tax. We will also impose more taxes with the aim to serve people more effectively.”
The town nazims maintained that they were not involved in any illegality and the law allows them to impose such taxes. “We are not imposing taxes on the common man,” said Saddar town nazim Mohammed Dilawar. “It is merely for those who are pocketing good profits through their businesses.”
