Reforms underway at KP’s Excise, Taxation & Narcotics Control Dept

PESHAWAR: Reforms are being made to improve the performance of the Excise, Taxation and Narcotics Control (ET&NC) Department Khyber Pakhtunkhwa besides ensuring improved service delivery.

The reforms being made included legal, administrative, tax reforms, e-governance initiative, tax facilitation and ease of doing business. An official handout said that a meeting of ET&NC Department was held the other day with Chief Minister Mahmood Khan in the chair.

The meeting reviewed the overall performance of the department with special focus on the progress made so far on various reforms initiatives in the department. Besides others, Minister for Finance Taimur Saleem Jhagra, Adviser to Chief Minister on ET&NC Department Mian Khaleequr Rahman and Secretary ET&NC, Haider Iqbal and officials from the Finance and Planning departments attended the meeting.

The meeting was briefed about various reforms in the department. The participants were told that to facilitate the taxpayers and give them relief, rate of rebate for Urban Immovable Property Tax (UIPT) was increased from 10 to 20 percent rental rate of commercial properties was reduced from 18 to 15 percent. All shops were excluded from rental value base formula and floor-wise locality factor introduced for the first time.

Rebate for private schools increased from 20 to 30 percent duplication of taxes on 18 items abolished and tax on profession, trades and calling exempted for the current financial year. The meeting was informed to encourage maximum vehicles registration in the province free of charge registration system for vehicles was introduced, adding that registration fee for vehicles up to 2500 cc fixed at one rupee only and 1 percent of the total value for vehicles above 2500cc.

Regarding the tax recovery of the department, the forum was informed that a total tax recovery of Rs3 billion was made during the financial year 2019-20 against the total target of Rs3.33 billion which is 90 percent of the target whereas a tax recovery of Rs4.01 billion was made during the financial year 2020-21 against the target of Rs3.74 billion which is 107 percent of the set target.

About the steps taken by the department for effective narcotics control, it was told that during the last one year, the narcotics control wing the department seized about 5000 kg of various narcotics and 715 litre of alcohol, registered 484 cases, arrested 573 accused and lodged firs against 333 vehicles.

The meeting was informed that tax challan of UIPT had been computerised, online and e-payment system introduced, and five tax facilitation centres established in five regional headquarters to facilitate the motor vehicle taxpayers.

Briefing the forum about e-governance and ICT interventions, it was informed that an ADP scheme had been initiated for creation of centralised database, developmental of new MIS , GIS application and its integration with the UIPT in different cities of the province with the aim to have a transparent, efficient and accountable system.

It was informed that in order to convert the overall payment system of the department from the existing manual to online payment, a sophisticated application titled as 'Zama KP' was being developed besides introducing universal number plates for vehicles.

Expressing satisfaction over the overall performance of the department and implementation of reforms initiatives, the chief minister directed the officials concerned for necessary steps to further improve it. He appreciated the department’s endeavours for tax recovery and said that the officials achieving their targets with regard to tax recovery would be rewarded. Stressing the need for restructuring the department to improve its efficiency, the chief minister directed the officials of the department to come up with proposals.