Only provinces should collect sales tax: CM

By our correspondents
February 05, 2017

Murad says Sindh govt working closely with Centre to finalise NFC Award

The Sindh chief minister said on Saturday that as the provincial governments were closer to consumers and had a better understanding of their issues, they should be entitled to collect sales tax instead of the Centre.

Speaking to a delegation of the Council of Pakistan Newspaper Editors, Murad Ali Shah said his government was working closely with the federal government to finalise the National Finance Commission Award.

“My government’s stance is very clear; we believe that the provincial governments should have the right to collect sales tax on goods,” he added.

“The provincial governments are in a better position to collect sales tax and can expand the collection net. The collected money may then be distributed by the federal government among the provinces as per their share.” The CPNE delegation was led by its president Zia Shahid and general secretary Aijazul Haq.

The chief minister said ever since the Sindh government had been given the right to collect tax, it had achieved a record collection target.

“Last year we have collected Rs61 billion and this year we have set a target of Rs78 billion,” he said. He pointed out that the federal government used to hardly give Rs8.6 billion to the Sindh government.

Replying to another question, Shah said he had raised the issues of the exorbitant toll tax being collected at M-9 (Super Highway and now Motorway), the number if collection booths and the need for making Jamshoro-Sehwan Road a dual thoroughfare with the Centre.

CPNE office-bearer Kazi Asad told the chief minister that 650 people had died in road accidents during the construction of M-9. Shah said the prime minister had announced making Jamshoro-Sehwan Road a dual thoroughfare in his speech. He assured Asad that he would personally look into the issue of the exorbitant toll tax.

The CPNE office-bearer also told the chief minister that the quality of M-9 was not that of a motorway.

 

Karachi’s problems

Replying to a query, the chief minister said Karachi had witnessed unplanned growth.

“Not only are citizens suffering because of the law and order situation, but the land mafia too is active and grabbing land along the drains, in slums and vacant plots,” he explained.

“The government is also busy fighting terrorists and outlaws. This is the basic reason that the government can’t pay enough attention to the development of the existing road infrastructure.”

Shah said the topmost priority of the government was to restore law and order in Karachi and it had also launched an operation against land grabbers. Simultaneously, he added, the government had also started improving the existing road network, redesigning flyovers and was also constructing new flyovers and underpasses.

“I am sure by the end of June, Karachi will be a different city; it will be the city of lights, the city of opportunities and the city of business, trade and commerce,” he vowed.  

The chief minister said the floods of 2010 and flash floods of 2011 had destroyed the infrastructure in 16 districts of Sindh.

“Therefore, reconstruction of the road networks and bridges has also been started under public private partnership and build-operate-transfer modes in central, northern and southern parts of the province.

 

LGs’ powers

The chief minister said the Karachi mayor and other local government representatives had been assigned full municipal functions and funds transfer system had also been streamlined.

Presently, he added, the government was giving over Rs60 billion to local bodies. “Actually, the local government representatives want the powers they had under the system introduced by Musharraf,” he said.

“The system at that time was aimed at weakening the provincial government.”

 

KCR project

Shah said the Karachi Circular Railway had been included among the CPEC projects and the the provincial government was working hard to meet the requirements for this purpose.

“I am sure we will start working on the KCR by October or November,” he added.

Replying to a question, the chief minister said that there was a federal cabinet committee on energy, but only the Punjab chief minister was invited to its meeting. “I had taken up this issue with the prime minister and now I am being invited too.”

Talking about traffic jams, the chief minister said that most builders had converted parking lots of their plazas into shops and action was being taken against this practice.

He agreed with the CPNE delegation that the conversion of 1000 sq yard bungalows into high-rises had exerted extra pressure on utilities and the infrastructure.

The chief minister added that the issue was on his agenda and he would come up with a clear policy soon.

The CPNE delegation urged the chief minister to order the audit of the previous local governments that worked during Musharraf’s tenure.