KARACHI, Aug 22: The Sindh government hopes to earn Rs8,500 million from infrastructure cess during 2008-09 compared to Rs6,063 million last year.

The estimates are based on 60 per cent unprecedented raise in infrastructure cess from 0.5 per cent to 0.8 per cent on FoB value of imports arriving at Karachi ports.

The excise and taxation department collected Rs765 million in July, on account of infrastructure cess compared to Rs397 million last year, marking a 93 per cent increase.

The total collection in July stood at 1,167.9 million against 818.7 million, marking a 43pc increase.

Director-general excise Asif Marbhoub told Dawn that they hope to collect Rs12,500 million during the new fiscal year, which would make the department number one contributor in the province revenue, leaving behind the Sindh Board of Revenue.

He said that the department would not only achieve the target of 15,335 million for 2008-09, but would also surpass it.

Revenue from motor vehicle registration has dropped by 18 per cent from Rs254.8 million in July 2007-08 to Rs209 million in July 2008-09. The reason is strict car leasing policy by banks and higher duty on import of cars.

Collection from excise duty stood at Rs146.6 million against 124.8 million in last July, an increase of 17.5pc. Revenue from hotel tax stood at Rs13.2 million against Rs10 million in last July, an increase of 32pc.

Answering a question about an unprecedented increase of 60pc in infrastructure cess, the DG said no trade body had made any representation against the high rise in the said tax, which means that the budgetary measures taken in the new budget to enhance revenue were positive.

Meanwhile, General Secretary of Karachi Customs Agents Group Arshad Jamal, when contacted for comments, was not available and did not respond to the query.

The higher collections from cess in July also belied the apprehensions that the imports would be diverted from Karachi for clearance at dry ports in the upcountry to avoid higher incidence of infrastructure, which is only charged in Karachi.

TAX HOUSE: The Sindh excise and taxation ministry has planned to build a modern tax house on the pattern of Large Taxpayer House of the Federal Board of Revenue to provide all tax collection facilities under one roof. The proposal has been sent to the ministry of finance for approval and allocation of funds.