Motor vehicle tax

Karachi pays 99.5%, Sindh…

 

Almost 99.5% of revenue collected under car/ bus tax/ fees in Sindh comes from Karachi. Contribution from rest of the province was negligible (roughly 0.5%) during 2016-17 (up to Feb 2017). The data was revealed by Excise & Taxation (E&T) Department Hour during Sindh Assembly’s Question Hour.
MQM legislator Kamran Akhtar, questioning E&T Minister Mukesh Chawla, said that over Rs1.046 billion were collected from Karachi under car/ bus registration, while only Rs533,000 was collected from rest of the province.
Responding to another question regarding number of vehicles (cars/ buses) registered in the province; Minister said that 39,296 cars and 255 buses were registered in Karachi whereas only one bus was registered in Sukkur region. Not a single bus was registered in Hyderabad, Larkana, Mirpurkhas and Benazirabad. Similarly only 34 cars – 3 in Hyderabad, 28 in Sukkur and 3 in Larkana were registered while no car was registered in Mirpurkhas and Benazirabad regions.
Tehreek-i- Insaf legislator Samar Khan questioned why E&T Department does not shut down its offices and sack its employees in rest of the province as a large number of employees must be working in these office with little productivity. The minister did not agree with him and said that these offices and employees performed other duties, besides collection of these taxes and were productive.
Responding to a question by MQM legislator Qamar Rizvi that a police officer had been driving more than one car with the same number plate, and what action had been taken? The Minister said that Department issued ‘cover’ number plates to law enforcement agency officials to facilitate them in their duties.
MQM legislator Dilawar Qureshi pointed out that many unregistered vehicles, with several – having names of their owners in place of number plates – were visible on roads. Was this legal? He questioned. The minister responded that all vehicles displaying name plates, and no number plates/ unregistered were illegal and should be seized. He, however, said that it was traffic police’s duty to seize such vehicles.
MQM legislator Jamal Ahmed said that many vehicles even displayed plates with MPA, MNA, Senator etc written on them. Here Speaker Agha Siraj Durrani intervened and said that law was probably silent on the issue, and vehicles displaying such plates could be seen all over the country. Federal government should handle the issue and form a policy/ law, which could be followed by all provinces. He added that due to security concerns, assembly staffers have been directed to ensure that no unregistered vehicle, or ones having tinted glasses, enter the assembly premises.
Muslim League, Functional legislator Nusrat Abbasi’s question was about various federal government vehicles displaying ‘GP’ number plates issued in other provinces yet registered in Sindh. She inquired, if they pay taxes to province. The Minister said that since many federal government departments had their head offices in Islamabad, they got their vehicles registered there. But if they got their vehicles registered in Sindh, then the province would get their taxes and they would be issued a ‘GP’ number. Currently around 9,999 vehicles in Sindh are registered with GP number plates.
Responding to a question regarding Department’s performance and how much revenue had it collected, the Minister said that E&T Department had till a few years ago had collected around Rs8bn while recent collection has gone over Rs52bn.
Minister Chawla said that a law was being formulated to consider four wheel drive, double cabin (four door) pickups as private vehicles (to pay higher tax) and only two door pickups would be considered as commercial vehicles.