Sindh govt decides to put Capital Value and Infrastructure Taxes on automation

RECORDER REPORT

KARACHI: After the success story of online collection of Sales tax on services, Sindh government has decided in principle to put two more provincial taxes including Capital Value Tax (CVT) and Infrastructure Tax (IT) on automation, well-informed sources told Business Recorder on Monday.

Authorities of Sindh government have taken this decision during a meeting held in the chair of Chief Minister Syed Qaim Ali Shah at Chief Minister's House a few days back.

While, officials of Sindh Revenue Board (SRB), Excise and Taxation, Board of Revenue, Finance department and others attended this meeting, sources said.

The officials of SRB briefed the Chief Minister Qaim Ali Shah that Sindh government can put more taxes on the automation which would bring more transparency in the collection of taxes, sources said.

They briefed Mr. Shah in detail and offered the services of SRB in this regard, sources added.

Qaim Ali Shah agreed with the briefing of SRB officials and accepted their proposal to provide technical assistance to concerned departments in order to put two provincial taxes including CVT and IT on the automation, sources said.

It may be noted here that CV tax has been collected by the Board of Revenue while, Infrastructure tax has been collected by the Excise and Taxation department of Government of Sindh since the day one.

After the approval by the competent authority, the SRB officials started their work to put said two taxes on automation which will be completed very soon, sources said.

Sources made it clear that after the launching of said computerized system, SRB would play the role of technical co-coordinator on this subject while, the collection would be done by the mother departments Board of Revenue and Excise and Taxation.

So far, yearly collection of CVT is about Rs 2 billion while, the Excise and Taxation department's yearly collection is about Rs 11 billion in the head of Infrastructure tax, sources informed.

With putting both taxes on computerized system, the collection would be increased and it would be more transparent because human hand's involvement would be reduced at highest level, sources claimed.

Sources expressed fear that Board of Revenue and Excise and Taxation are very much lucrative departments in the eyes of officers of Sindh government so that when they will listen about this new decision they would definitely create hurdles in the way of putting taxes on automation.

It is reported that a large number of officers of other departments are working in said departments on deputation basis because lucrative jobs, sources concluded.