KARACHI, Oct 7: Revenue department of the city government is expected to collect taxes worth Rs7 billion for the current fiscal, of which its share will be around Rs500 million only, as the provincial government will take more than Rs5.4 billion and the remaining will be bagged by Towns.

Sindh Local Government Ordinance, 2001, has authorized the CG to collect ten taxes including two new ones — health and education tax — while Towns and Union Councils can collect ten and seven different taxes, respectively.

However, the main body to collect taxes on behalf of the city government is its revenue department, which will collect taxes on behalf of the provincial government, city government and the Town Councils.

The DO, Revenue, will have a DDO in each town to collect property tax on annual/rental value of building and land, tax on transfers of immovable property and entertainment tax.

Though there is no major tax with the city government presently and it is totally dependent on the provincial government for finances, nevertheless the department has a target of Rs7,134.37 million for the year 2001-2002 and out of it the major chunk amounting to Rs5476.23 million is the Sindh government share.

The city government has the least share of only Rs504.98 million and the Towns’ share is Rs1,153.16 million.

On behalf of the city government, the revenue department will collect Rs400 million on occupancy value which is related to land department, lease money, etc; rent service charges, transfer fee, etc Rs64.52 million; local rate Rs0.046 million and parking fee Rs40 million.

For the towns only, property tax and entertainment tax will be collected amounting to about Rs1,106.58 million and Rs46.58 million, respectively.

Revenue department of the city government has ten DOs having designations of revenue tax, registration tax, stamp tax, estate tax, land tax, local tax, excise tax, motor vehicle tax, property tax and infrastructure tax. These DOs will have DDOs according to the nature of the job of their respective offices.

The revenue department EDO, Javed Hanif, in his presentation to City Nazim, Naimatullah Khan, proposed fiscal measures that may amount to more than Rs6 billion for the city government.

Under the proposals, the city government will get maximum revenues from sea dues amounting up to Rs3,800 million, auction of plots Rs844.86 million, renewal of leases Rs500 million, health tax Rs207.78 million, education tax Rs165.98 million, motor vehicle tax Rs781.23 million.

Health and education are new taxes authorized to the city government in SLGO 2001.—PPI