KARACHI - City District Government Karachi (CDGK) has decided to seek new and different ways to generate revenue, as Sindh government has curbed its funds, to keep going the development projects of the City, The Nation has learnt here on Thursday. The finance department of CDGK has confirmed when contacted that the new avenues of income are being explored and DCO Karachi Javed Hanif is monitoring the task. The sources in the DCO secretariat said that work on various proposals was underway to generate revenue keeping in view the future requirements of the city government. Final summary would be sent to City Nazim Mustafa Kamal for final approval. The recommendations, than, would be referred to city council for reviewing in the city council meetings. The elected representatives of city government through resolutions would finally decide the implementation on the suggestions proposed by finance department. It may be noted that CDGK is currently facing Rs 3 billion shortfall of funds due to deduction in the head of OZT and Single Line Transfer System and 20 per cent increase in the salaries and pension of the employees of city government. They said that in order to supplement the financial position of CDGK, following objects could be explored to generate resources. CITY DEVELOPMENT TAX: The CDGK is not levying any tax on fuel consumed within its limits but a nominal fee on it can provide handsome revenue to CDGK. It is proposed that new tax under the name of City Development Tax on petrol consumption may be levied 10 paisa per litre. The CDGK may recover this tax directly from the petroleum companies on the basis of fuel sold by them within CDGK limits. The financial position of CDGK is not good and by levying above tax, the CDGK will earn an estimated amount of Rs 12 crores per annum. SEA TAX: Prior to introduction of Octroi levy in 1969, the Karachi Metropolitan Corporation (KMC) was recovering Terminal Tax from the goods imported within its limits. However, after levy of Octroi, the said tax was no more required and Octroi was recoverable on advalorem basis on the goods imported from abroad and on weight basis for the local goods. However in 1999, the federal government abolished levy of Octroi across the country and due to which the KMC sustained huge loss of its revenue as Octroi was the main source of its revenue. In order to continue the City development projects, bridges, flyovers/underpasses and beautification of City, it is necessary for the CDGK to have its own revenue resources, which provide sufficient funds directly to CDGK to meet the requirements of the City. It is proposed that tax on import of goods from abroad by sea and air may be levied at the rate of 1 per cent on the actual value of goods which shall provide sufficient funds to CDGK. CDGK PETROL PUMPS ON COMMERCIAL BASIS: The CDGK could also run petrol pumps on commercial basis to mobilise income. Since the use of CNG is increasing rapidly it seems feasible if mini CNG stations are established on important roadsides. POULTRY FEE: The poultry shops throughout the City are also acting as slaughterhouse. It is proposed that all such shops be get registered and a registration fee plus some annual charges if inflicted, would bring enormous revenue for the City government. CYBER/INTERNET CAF: The owners of Internet cafes are doing a roaring business, as such, a nominal fee could also be imposed/charged from these cafes through proper registration. Same tax would be imposed on Internet Service Providers (ISP). Lot of ISPs have emerged and deriving handsome income. It shall be feasible if they are properly registered and a registration fee is charged which would fetch a nice income for CDGK. INTERNET/TV CABLES: The Internet cable operators as well as the TV cable operators have been carrying out the business on quite a large scale. They do not pay any land rent or any other charges for utilising CDGK facilities. In case they are properly registered by inflicting the registration fee and the land rent, it will fetch considerable income. RAFFLE SCHEME: A raffle scheme of a bond/ticket of Rs 10 denomination if launched by CDGK inviting funds from the general public for development works, may contribute some good amount. SERVICE CHARGES: Karachi is an international city and being a port city the CDGK have to maintain the roads of the City to give safe and clear way to the vehicular traffic. The sea port and airport are used for import of goods for the entire country and trucks and trailers loaded with goods use the roads of the City while CDGK is not taking any tax on such transportation. In order to maintain the City and develop the conditions it is necessary to levy tax on trucks and trailers carrying goods cleared from sea port and airport at Rs 100 from trucks, Rs 200 from trailers and Rs 50 from Datsun and other light cargo handling vehicles. FIRE TAX: The CDGK is providing fire fighting facilities to the City, however the law is not effectively enforced due to which the CDGK is not recovering its revenue properly. It is suggested that for the commercial buildings, recreational parks, shopping centres it is declared mandatory to obtain registration fee which shall be renewable annually. The CDGK shall recover handsome revenue on this account. USE OF CDGK CLINICS & HOSPITALS: In most of the hospitals and clinics running under CDGK control, GPD is held in morning times whereas these hospitals and clinic's GPD space remain closed. If the said space is utilised for evening special clinics and given to the doctors/consultants on rental basis, the CDGK shall recover handsome revenue. CDGK STORE DEPARTMENT TO ACT AS A BIDDER: The stores and procurement department of defunct KMC, which is catering the needs of the CDGK departments, is also capable to compete with the private companies and act as a bidder to provide store items to big organisations. CDGK TO ACT AS A BUILDER: The CDGK could also venture on the construction side by building shops/commercial plazas/parking lots in the City which could also attract handsome capital.