Sindh faces deficit in tax collection

KARACHI - The Sindh government suffered shortfall in collection of major taxes including Agriculture Income tax, Professional tax, Hotel tax and others during outgoing financial year 2007-08, as the total collection was remained below the target of Rs18 billion, The Nation learnt on Wednesday.
The overall tax collection of Sindh during fiscal year 2007-08 reflected decline of more than Rs 1 billion as compared to the targeted Rs18 billion for the said year.
However, the PPP led Sindh government has set Rs22 billion target of provincial tax receipts for new fiscal 2008-09 which is Rs4 billion more than budget target of outgoing fiscal.
According to the tax collection data, the provincial government had not succeeded in meeting the target of Agriculture Income Tax as Board of Revenue could collect only Rs200 million against the budget target of Rs450 million in last fiscal.
The provincial government attributed the rains and natural disasters resulted which caused harmful for crops and resulting in less collection of agriculture income tax in the last fiscal. An official said the remissions and increase in exemption limit allowed various districts affected the receipts recovery.
Similarly, transfer of property tax (registration) has also been fell short as provincial government collected only Rs650 million over actual budget target of Rs800 million.
According to annual data of provincial tax collection compiled by provincial finance department, another major shortfall of Rs90 million has been witnessed in the Taxes on Profession, Trade and Clinics in last fiscal. Under this head, the Excise and Taxation Department had collected only Rs220 million against target of Rs310 million in last fiscal.