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.

 

News & Events

Tax collection in Sindh gets a major boo

April 10, 2014 Daily Times    KARACHI: Sindh Excise and Taxation Department (E&TD) collected more than Rs 23.017 billion in taxes by February 2014, showing an increase of Rs 3.965 billion as compared to Rs 19.052 billion collected during the corresponding  period of last year.  According to a document available with the PPI news agency, all the seven different taxes collected by the (E&TD) sowed  growth until  February 2014 as compared to the collections during the same period of last fiscal year.   The E&TD collected Rs 2,649.079 million in terms of motor vehicle tax until February, showing an increase of Rs 389.885  million.The collection during the same period of last fiscal year stood at Rs 2,259.194 million.  Similarly, an amount of Rs 2,240.695 million was collected through excise tax as compared to Rs 1,860.552  million in the similar period of last fiscal year, showing an increase of Rs 380.143 million. The infrastructure cess  collection recorded a boost of Rs 2,877.303 million as Rs 16,359.736 million was collected until February of this  fiscal year (2013-14) compared to Rs 13,482.433 million in the similar period of 2012-2013.  Moreover, the E&TD collected an amount of Rs 136.825 million until February in terms of cotton fee as compared to  Rs 122.876 million last year, showing an increase of Rs 13.949 million. The collection of property tax until February of the  current fiscal year made a reasonable growth of Rs 279.800 million at Rs 1,405.653 million against Rs 1,125.853 million c ollected in the same period last year.  Professional tax collection also made a modest rise of Rs 20.726 million at Rs 202.377 million until February as compared  to Rs 181.651 million collected in the corresponding period last year.  The entertainment duty collected during the current fiscal year showed a slightest increase of Rs 3.292 million at Rs 23.040  million as compared to Rs 19.748 million of the last year.  Talking to PPI, Excise and Taxation Director Shoaib Siddiqui said that the rise in revenue collection was due to efforts of  the people in the department, and that they were hopeful that the revenue target set by the government for the fiscal year  would be achieved.   He said that the majority of revenue collection made by his department came from motor vehicle tax and infrastructure cess,  while the recovery of both the taxes stood at 100 percent.  ...

Monday, 14 April 2014

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