Tax
recovery figures drop to abysmal lows
Tax
fallout likely to trigger financial difficulties for the provincial
govt
By Imtiaz Ali
Karachi
The
Sindh Government is likely to face fiscal problems in the
forthcoming financial year (2009-10) as different departments have
recovered taxes below the set targets for the year 2008-09 owing to
various reasons, official sources told The News.
Four provincial departments, namely Prisons, Power and Irrigation,
Food and Local Government, performed the worst with regards to
recovery of taxes, sources informed. They added that, during the
financial year 2007-08, tax recovery was almost 100 per cent for
most departments. However, during the last 10 months of the outgoing
financial year, the recovery was only 20 per cent, triggering fears
of financial difficulties for the provincial government.
The Excise and Taxation Department, for one, set a target of Rs6
billion for motor vehicle tax. However, during the last 10 months,
the department collected only around Rs3billion.
The Agriculture Department has fared even worse. Of the target of
Rs350 million, the recovery has amounted to only 32 per cent.
The Board of Revenue was given a target of Rs250 million to be
collected through land revenue. However, it, too, has achieved only
half of its target.
The Food Department, with a target of Rs15 million for the year, has
also failed to recover its target, revealed sources. With the same
output since the last three years, the recovery for the food side
(economic services receipts food) includes renewal fee of Chakis,
flour mills fee, registration and licence fee of flour chakis etc.
Department officials assert that they have been submitting this
amount in “Account-I”, but the finance department has instructed
them to submit the money under the proper head of account, which is
not being done.
The Fisheries Department was given a target of Rs15 million, but so
far the department has only recovered about three per cent of the
estimated target. Sources said that the former provincial government
had given contracts of fish ponds to certain influential persons and
even law-enforcement agencies without extracting any charges from
them.
The Labour Department also failed to collect receipts under the head
of manpower management (fee on technical colleges etc). It was given
a target of collecting Rs22 million but so far the department’s
recovery has amounted to only 17 per cent. The Public Health
Engineering Department was required to collect Rs22 million;
however, it collected barely above 19 per cent of its target.
The Cooperation Department was given the task of recovering taxes
from cooperative societies etc., but it has only accumulated
approximately 30pc of its target of Rs3 million.
The Power and Irrigation Department was given a target of Rs886
million for electricity duty for the financial year, but, during the
last 10 months, it collected only about 8 per cent of its target.
The Local Government Department was also unable to meet its target
of Rs32.5 million under the head of account of fiscal administration
audit, collecting only 6 per cent of the estimates.
The Prisons Department was given the target of recovering Rs3.5
million; however, it too failed and made an almost negligible
recovery of a little over one per cent.
The performance of the Civil Defence Department for recovery was
zero. Sources said that Civil Defence comes under the Home
Department but it has been devolved to the district governments.
However, the employees are still receiving their salary from the
Sindh government.
The
News: Sunday, June 14, 2009 |