KARACHI, June 20: The Sindh government has decided to replace Motor Vehicle Tax (MVT) with a revenue neutral “road user charge” on fuel in the province from next fiscal year.

This was stated by Sindh Finance Minister Dr Abdul Hafeez Shaikh while presenting Sindh Budget for the year 2002-2003 on television and radio, here on Thursday.

“It has been decided in principal to abolish the Motor Vehicle Tax to reduce hassle for the citizen and plug avoidable leakages of revenue,” he said, and added that this would be replaced by a revenue neutral road user charge on fuel.

However, he said, this abolition would take place soon after approval by the federal government as fuel was a federal subject.

He said the provincial budget for the year 2002-2003 had “no new tax,” nor did it envisage “increase” in the rate of any existing tax.

Keeping with the tradition established last year, the minister said, there would be no new tax in this budget, nor would there be any increase in the tax rate.

He said professional tax and revenue collection of land and agriculture tax would be simplified and other stamp duties would also be abolished after the completion of review.

Talking about the incentives for education, Shaikh said non-salary expenditure on primary education had been enhanced by 50 per cent in the next budget, bringing the total increase over last two years to 200 per cent. Last year it was enhanced by 100 per cent.

He said primary students in government schools would get free books from the next year to ensure that no child was denied the incentive to attend primary education in the province.

Similarly, all girl students in the middle schools would get Rs100 per month, a monetary incentive payment to stay in school beyond primary education.

The minister pointed out that the government would create an endowment fund of Rs1 billion to support the efforts of youth to acquire modern skills and best quality education.

The first instalment of Rs200 million has been allocated in the budget.—APP