Excise and Taxation Department

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Excise,Taxation and Narcotics Department, Government of Sindh PDF Print E-mail

The Excise,Taxation & Narcotics Department is the main revenue collecting agency of the Government of Sindh which plays a paramount role in resource mobilization. The Department has been entrusted with two functions i.e. Tax collection and Narcotics suppression. It has the exclusive authority of issuance & administering the intoxicating liquor and other intoxicating licenses.
In the province of Sindh following Taxes are being levied and collected through Excise and Taxtation Department and the taxpayers in these categories are more than 5 million.

i) Property Tax

ii) Professional Tax

iii) Infra-Cess Tax

iv) Motor Registration Fee and Tax

v) Hotel Tax

vi) Excise Duty

vii) Cotton Fee

viii) Entertainment Duty

i) Property Tax

The levy and collection of property tax on lands and buildings is regulated by the Sindh Urban Immovable Property Tax Act 1958. Section 7 of the Act mandates preparation of valuation list of properties for the purpose of property tax after every five years. Property Tax is levied on lands and buildings declared as Rating Areas by the government. Property Tax is one of the major taxes collected by the  Department.

ii) Professional Tax

Professional tax, also known as an occupation tax or a professional privilege tax, is a tax that a professional must pay to receive the right to practice a professional service. Professional Tax regime produces manually prepared tax challans for business entities, on annual basis. Criteria for calculating professional tax is fixed, depending upon number of directors, employees and Paid-Up Capital and Annual turnover of Establishment. It is believed that there is a gap between the assesses as per the record  Department and that of the Income Tax Department. This gap of assesses can be improved, once the computerization of Professional Tax takes place and database of Income tax assesses belonging to business and trade is obtained. Notices to professional tax assesses can be issued / produced by the system automatically. As a sequel to this, tax base will be broadened.

iii) Infrastructure Cess

Infrastructure Cess tax regime is applicable to all the goods entering the Province through Sea or Air. A Cess @ 0.85% (@0.125% of Gold only) is levied on the C and F value of goods as determine by the Customs Department. . .

iV) Motor Registration Fee and Tax
Vehicle Registration involves the recording of a motor vehicle in the official records after due verification. Vehicle Registration is mandatory/compulsory under the law and is essential to prove the ownership of a vehicle. It is also required during the sale of a vehicle and transfer of its ownership. At present there are approximately 2.6 million registered vehicles in Sindh and the number is increasing day by day.

i.Motor Vehicle Tax is levied on every motor vehicle registered in any district with Registration Fee.

ii.The annual Motor Vehicle Tax is levied under Sindh Motor Vehicle Taxation Act,1958 and Motor Vehicle Rules, 1959.

Every vehicle whether commercial or private has to registered, and issued registration number, registration book and number plate. The registration of vehicles and collection of taxes are being effected through computerized system and authorized online National Bank branches linked with main server at Civic Centre Karachi.
The Computer System of Civic Centre Karachi is also linked with the regional Directorates, Excise and Taxation at Hyderabad/Sukkur /Larkana /Mirpurkhas.

v) Hotel Tax

Every hotel owner is required to furnish the particulars of his Hotel on Declaration Form H.T-1 every year .Assessment for Hotel Tax is made during every financial year on the basis of return / documents filed , inspection carried by the field staff and after giving the representative of the hotel an opportunity of being heard. Assessment order is issued and demand is raised in demand register. (HT-II ). Total annual liability of Hotel Tax is collected in (12) equal monthly instalments. Tax challans are manually prepared by Excise and Taxation Officer, and payment is made generally through crossed cheque into State Bank of Pakistan

vi) Excise Duty

The Excise and Taxation Department controls the manufacturing and sale of following excisable articles:-

  • Intoxicating liquor (PMFL and Beer)
  • Rectified Spirit.
  • Denatured Spirit.
  • Methanol.

The Excise matters are dealt under the following enactments:

a) Prohibition (Enforcement of Hold) ordinance 1979.

b) Sindh Prohibition Rule 1975.

c) The Sindh Abkari act 1879.

d) Sindh Excise Manual Volume-I.

Vii) Cotton Fee

Cotton Fee is levied under the Cotton Control Ordinance 1968.
• The base of the Cotton Fee is the quantity of Raw Cotton brought for ginning in the Cotton Ginning Factory. • The rate of Cotton Fee is Rs. 10/= per 100 K.G. of Raw Cotton.

viii) Entertainment Duty

Entertainment Duty is levied and Collected under Sindh Entertainment Duty Act, 1958.

· Entertainment Duty is levied on entertainment places like Cinemas,Amusements, Parks,Variety Programmes Sports etc on following rates.

· Presently no duty is being collected from Cinemas.

· Dramas, plays, variety Programmes 10% of the payment for admission.

· Games and Sports 5% of the payment for admission.

· Items of amusement other than above 25% of the payment for admission.

 

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