KARACHI, July 15: The Sindh cabinet, which met here on Monday with Governor Mohammedmian Soomro in the chair, decided to introduce various amendments to the Stamp Act of 1899.

It also decided to lower the stamp duty and registration of documents of loans based on interest in order to attract foreign investment.

An official statement said the decision was aimed at making transparent all the matters pertaining to stamp duty and registration fee.

It was also decided, in principle, to make transparent the matters regarding power of attorney about movable and immovable properties and the system of registration fee.

With amendment to the stamp act, the condition of 20 employees for the inspection of public office has been abolished.

Through another amendment, 15 per cent of stamp duty or Rs20,000, whichever is more, will be recovered as fine for the concealed amount.

With addition in the rules of Stamp Act 1925, it has been made binding on all organizations to provide necessary information on time.

The meeting was informed that some organizations, particularly banks and travel agencies, were not providing necessary information on time and despite repeated reminders no positive response was received.

Through addition in rules, the violators can be fined under section 73 (2) of the Stamp Act.

With yet another addition in the rules, it has been made binding on airlines, travel agents and banks to promptly pay the stamp duty recovered for the provincial government on air tickets, cheque books, bank drafts and pay-orders.

The meeting took notice of recovery of more fee than specified by some travel agents and airlines general sale agents and decided to conduct inquiry and initiate action against the violators.

It was also decided that heavy amount of stamp duty could be paid through challans.

With amendment to section 17 of the act, it was decided that at the time of submitting documents for registration, the duty in vogue would be recovered and four months time would not be applicable in this case.

Through another amendment to the Sindh Stamps Supply and Sales Rules 1940, the stamp vendors throughout the province were bound to renew their licences regularly. So far, this procedure is in vogue in Karachi only.

It was decided to make amendment to the relevant section of the act in order to bring in the purview of the stamp act all the international and national banking institutions.

Earlier, member of the Board of Revenue, Munawwar Opal, informed the meeting that there was nine per cent increase in the recovery of stamp duty and registration fee during the last fiscal year and a sum of Rs2.248 billion was recovered under this head.

He stated that with a cost of Rs41 million, eight new microfilming units were being set up for preserving the registration documents of sale and purchase of property. Of these, he said, three will be set up in Karachi and one each in Hyderabad, Sukkur, Larkana, Mirpurkhas and Nawabshah. These units will be functional by the end of this month.

In addition, automation was being introduced in 79 sub- registry offices. This will cost Rs21 million and will be completed in three years. In this year’s annual development programme, a sum of Rs10 million has been allocated under this head.

It was stated that various cases of less payment of duty were detected separately by the three microfilm unit and three inspectors.

Through microfilm units, a sum of Rs10.596 million was recovered during the last two years.

The cabinet decided to lower stamp duty and registration fee for documents of loans-based interest. Under this, stamp duty has been reduced from 4.5 per cent to one per cent and registration fee reduced from 1.5 per cent to one per cent.—APP