KARACHI, Feb 18: In a somewhat expected move, treasury members on Wednesday tabled a resolution regarding the abolition of conservancy tax and allowing the adjustment of fire rate with utility charges.

Opposition members objected to the way the resolution was tabled and raised the issue of the new infrastructure tax which, they maintained, would further burden the common man.

Attacking the infrastructure tax, they deplored that instead of imposing taxes on stakeholders such as Pakistan Railways, the Karachi Port Trust, cantonment boards, Port Qasim and other agencies, taxes were being imposed on common citizens.

However, treasury members defended the city government’s decision, saying that a ‘nominal’ rate of Rs70 per month had been levied, which was essential for the maintenance of development projects in the city.

They also argued that withdrawal of conservancy tax and enhancement in utility services’ charges were two different issues and should not be interlinked.

They insisted that the withdrawal of conservancy tax and adjustment of fire rate with utility charges in future would provide relief to the common man as it would reduce the burden of taxes by 35 per cent.

But the arguments did not seem to convince the opposition members, who drew the attention of the custodian of the house, Nasreen Jalil, to allow them to make their submissions.

They attacked the city government for imposing what they termed were “illegal taxes” on common citizens in the name of development.

Initiating the debate, Leader of the Opposition in the City Council Saeed Ghani argued: “We are not opposed to the levying of taxes for development purposes. But there are provisions of law which must be taken into consideration before imposition of any new tax.”

He insisted that the practice of passing resolutions “unlawfully” should be shunned, saying that the opposition had always pointed out legal lacunae in the resolutions being submitted by the treasury, which were later rectified in many cases.

Accusing the treasury of adopting a duplicitous attitude on various issues, Mr Ghani said the opposition leaders had openly expressed their reservations on matters relating to the imposition of any new taxes, but their statements were ignored.

‘No taxes, no development’

Taking the floor, Leader of the House Asif Siddiqui defended the city government’s decision, saying that it was a nominal charge. Furthermore, he said that without taxes, the government could not undertake any development works.

Mr Siddiqui’s observations did not impress the opposition benches, who raised slogans against the treasury. Pandemonium broke out in the house as both sides of the divide started thumping of desks.

Defending the resolution, the treasury leader said it was prepared according to the provisions of the law. He said had there been any reservations, the same could have been submitted in the house committee.

He accused the opposition of making political mileage on every issue, saying that “we need funds for the maintenance of development works.”

Unimpressed by the arguments of the treasury leader, the opposition continued their protest by desk thumping. There was an uproar in the house as both sides refused to listen to each other.

At times one could hardly listen to what they were saying over the din.

Treasury leader Masud Mehmud supported the contention of Mr Siddiqui and dismissed the arguments of the opposition leader, saying no legal requirements were ignored before tabling any resolution.

Opposition leader Zahid Saeed argued that instead of imposing any new taxes on common citizens, taxes should be levied on all stakeholders who are availing municipal services.

When the resolution was put to the vote in the house, the opposition benches did not take part in the voting process and continued their protest against the treasury, shouting slogans such as “it is all false.”

However, amid protest the resolution was adopted by a majority vote.

The resolution clears the way for the abolition of conservancy tax since the date of imposition of utility charges and adjustment of fire rate in utility charges. But the city government will continue to charge the fire rate on account of municipal services outside the jurisdiction of the CDGK and for this purpose the old system of recovery would continue.

Earlier, opposition leader Juman Darwan congratulated all the senators in Sindh who were elected unopposed. He lauded the political acumen of the leaders of both the major parties.

He also pointed out to the chair that no development works were carried out in his union council. However, treasury member Shahabuddin explained that uplift projects had been undertaken in all the union councils of Orangi Town.

Those who participated in the council meeting included Sulman Mujahid Baloch, Dr Nikhat Shakeel, Rafiq Ahmed, Ahsan Siddiqui, Ibrahim Mughal, Nasim Khan and Anwar Baloch. Later, the convener adjourned the council session to meet again on Feb 19 at 3.30pm.