KARACHI: The Sindh government Tuesday proposed various fiscal measures in the budget for financial year 2021-22, including a plan to automate stamp duty collections, a major component of tax collection stream in the next financial year.
Chief Minister Sindh Syed Murad Ali Shah in his budget speech stated that provincial government has worked out a plan with State Bank of Pakistan under which tax collection will see increased automation as taxpayers will be able to pay their taxes online through alternative delivery channel, a system under the SBP, connecting with payers through a third party service provider for the State Bank.
Through this system we plan to integrate our revenue agencies directly with the State Bank and expect to increase property tax collections by manifolds when it is automated, he said and added that we are also in the process of introducing 'smart cards' for vehicle verification and for eliminating fake registration of motor vehicles.
He stated that provincial government plans to automate stamp duty collections, a major component of our tax collection stream in the next financial year and it would be deployed using ADC under the State Bank of Pakistan and is expected to increase our stamp duty revenues by about 100 percent. The Board of Revenue is diligently working towards its implementation.
Shah announced the introduction of negative list for sales tax on services, installation of Point of Sale devices in specific sectors, strengthening Survey & Development wing of Sindh Revenue Board (SRB) and expanding risk based tax audit to increase tax collection from under-declaration and non-declaration of taxable service-based revenue.
Chief Minister proposed to add a proviso, or otherwise amend, Section 25 (1) of Sindh Land Tax & Agricultural Income Tax Rules, 2001 to make computerization of records mandatory.
The Chief Minister also announced LARMIS-1 to scan, archive and digitize the land records. It is 100% completed for all the land records of Mukhtiarkar and Assistant Commissioner Offices in all districts of Sindh Province.
He also announced to introduce LARMIS-2, which is under approval phase of PC-1. Its scope includes integration of digitized land record, maps and registries. Moreover, automation of processes is also included in its scope. He stated that E-Stamping software has been developed while ancillary arrangements to launch the system are underway. Amendments in Stamp Act have been approved by the Provincial Assembly. The system will be operative in next financial year.
He also announced launching a web portal to facilitate title record verification, e-assessments and e-payment of taxes, etc.
In excise & taxation field, Chief Minister he announced that Sukkur Survey - GIS based Database Management System completed and issuance of challans as per new system will be issued by NFY whereas Karachi Survey - Similar survey for Karachi is planned under CLICK Project and outsourcing Challan Delivery - ET&NCD has opted to outsource the delivery function to Pakistan Post. The process is underway.
He announced that Alternate Delivery Channels (ADC) & Online Tax Collection's implementation has been approved and first stage Online Tax Collection of Motor Vehicle Tax has been started and in the second stage it will be extended to Property Tax, Professional Tax and other provincial revenues. The software for web-based online tax payment through 1Link system is under development.
Shah said that IT Directorate and IT Policy and SOPs have been developed. Facilitation Centre at DGs Complex, I I Chundrigar Road, Karachi will be established. Security featured MVR smart cards replacing motor vehicle registration books have been introduced.
Copyright Business Recorder, 2021
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