KARACHI: The Sindh government on Saturday announced a 10 percent increase in the infrastructure development levy on goods entering or leaving the province through air or sea.
The Sindh Finance Bill 2016 says cess at the rate of 1.10 percent of the total value of goods as assessed by the customs authorities would be collected on any consignment weighing up to 1,250 kilogrammes. Earlier, the rate was one percent.
The cess was levied to develop and maintain infrastructure in the province.
The government earmarked Rs 22.4 billion for road development in the annual development programme for the next fiscal year.
“The proposed allocation in the ADP under road sector, for the coming financial year 2016-17, is Rs22.4 billion against Rs15.4 billion in 2015-16, which is a significant increase of 45 percent,” the bill says.
The government allocated Rs10 billion for major infrastructure projects of Karachi.
“We are not only focusing on creating new infrastructure but also keeping sizeable allocations for maintenance of existing infrastructure,” said the government.
On consignment weighing between 1,250 and 2,030 kilogrammes moving through the province, cess at the rate of 1.11 percent of total value of goods would be collected.
The government further proposes a levy of 1.12 percent on consignments weighing between 2,030 and 4,060kgs, while the rate is 1.13 percent on consignments weighing between 4,060 and 8,120kgs.
Cess rate is 1.14 percent on consignments weighing between 8,120 to 16,000kgs.
Levy at the rate of 1.15 percent of total value of goods as assessed by the customs authorities would be collected on consignments weighing more than 16,000kgs passing through the province.
In addition to the rates notified above, one paisa/kilometre would also be collected on goods upon entering in and using the infrastructure of the province and distance covered within the province.