KARACHI: Revenue collection by the Sindh Excise and Taxation Department increased 20.8 per cent in 2016-17, according to official data.

The department collected Rs52.54 billion in the last fiscal year, with most growth coming from the infrastructure cess.

The cess is charged on all imports landing in the province by sea and the airport.

Its purpose is to meet the cost incurred on the maintenance of roads as well as law and order arrangements for the safe passage of imported consignments.

The department collected the infrastructure cess amounting to Rs40.6bn, up 25pc from the preceding fiscal year.

According to department’s director general Shoaib Siddiqui, the collection of infrastructure cess will soon go up by 50pc. Under a court order, he said, half of the cess has to be paid in cash while the rest is against bank guarantees. This will increase the total revenue collection to Rs56.92bn, he added.

Despite overall growth, collection under the head of excise enactment declined 11.4pc to Rs3.46bn. Mr Siddiqui said the reason for its decline was the closure of wine shops on the order of the Sindh High Court during the last fiscal year.

Major growth was witnessed in motor vehicle tax collection. It amounted to Rs6bn in 2016-17, up 16pc year-on-year.

Revenue collection on account of property tax remained almost flat at Rs1.89bn in the last fiscal year.

Entertainment duty recorded the growth of 22.8pc in 2016-17. It amounted to Rs57.26m, up Rs10.6m from a year ago.

However, the collection of fee on cotton crop declined 2.8pc to Rs151.73m. This was because of a short cotton crop in the last season.

 

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