KARACHI: The Sindh government’s tax revenue collection soared 23.7 per cent to Rs43.8 billion during the outgoing fiscal year compared with Rs35.4bn in 2014-15.

The final figures released by the Excise and Taxation Department show that the target of Rs41.8bn set for the fiscal year was exceed by almost five per cent thanks to rise in the collection of two major revenue spinners -- Motor Vehicle Registration (MVR) and Infrastructure Cess -- contributing jointly Rs37bn to the provincial kitty. The MVR fee collection jumped to Rs5.2bn from Rs4.2bn last fiscal year and infrastructure cess on imports also rose to Rs32bn during the year under review compared with Rs25.1bn in the previous year.

Revenue generation from excise duty could witness a slight increase to Rs3.9bn during 2015-16 from Rs3.8bn the last year mainly due to closure of several excise check-posts along the National Highway.

Property tax contributed Rs1.9bn to the provincial exchequer during the outgoing fiscal year against Rs1.8bn last year.

Revenue from professional tax registered a minor increase to Rs345.6 million against Rs322.2m the previous year.

In view of great scope of revenue generation from property tax and professional tax, the Sindh government is desperately waiting for a comprehensive survey of housing units planned with the World Bank’s assistance. It is hoped that after the survey would bring a large number of property units and businesses under the tax net.

Collections from cotton fee dropped to Rs154m against Rs160m last year due to the disaster of cotton crop.

Entertainment activities remained dull during the long hot summer and the month of Ramazan. The entertainment duty contributed just Rs46.5m compared with Rs46.1m last year.

The excise and taxation department has moved a summary for the revival of entertainment duty on cinema tickets. Since the cinema industry has revived with high cost of tickets the department feels it is high time to reintroduce entertainment duty on cinema tickets.

Director General Excise and Taxation Shabbir Shaikh said that the department has plans to carry out some ambitious projects this year to modernise the tax system by introducing online registration of vehicles and payment of road tax through internet banking and ATM as well as private banking channels.

Currently the tax is collected through only designated branches of the National Bank of Pakistan.

Published in Dawn, July 17th, 2016

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