CM asks excise department to achieve turnover target

Asks the senior minister to explore new tax options that could be included in the upcoming budget

KARACHI:

Sindh Chief Minister Syed Murad Ali Shah at a meeting on Saturday reviewed the revenue recoveries of the Excise, Taxation and Narcotics Control Department and found a shortfall of Rs19,977 million during the last nine months of the current financial year 2023-24.

During the meeting, the finance department shared the collection data of the Excise and Taxation department for the last three years, from 2020 to 23. It was revealed that the department was expected to collect Rs335,200 million but only managed Rs287. 604 million to be collected, resulting in a deficit of Rs47,596 million.

The Chief Minister expressed his disappointment and directed the department officials to focus on improving their recovery. He also advised them to explore new tax regimes, review existing tax rates and focus on professional taxes and excise duties, which offer significant potential.

The meeting, held at the CM House, was attended by Excise Minister Sharjeel Memon, Chief Secretary Asif Hyder Shah, Finance Minister Fayaz Jatoi, Excise Minister Saleem Rajput, Finance Special Secretary Nisar Memon, and Department DGs Aurangzeb Panhwar and Waheed Shaikh.

Excise, Taxation and Narcotics Control Minister Sharjeel Memon was present on the occasion and briefed the CM on the recovery of various taxes and fees including professional tax, excise tax, motor vehicle tax, cotton fee, infrastructure, entertainment tax, and others.

According to the minister, the department has to recover Rs143.273 million in seven different taxes and levies during the current financial year.

Moreover, the department has achieved 81.41 percent of its nine-month target of Rs 107,455 million, recovering Rs 87,478 million.

The figures shared by Sharjeel show that the department has recovered Rs565 million in professional tax against a target of Rs1,460 million, which is 38.72 percent of the target. The provincial excise collection stands at Rs5,165 million against a target of Rs9,692 million, representing a recovery of 53.29 percent of the target.

Meanwhile, the motor vehicle tax has a target of Rs11,351 million, of which 68.08 percent or Rs7,728 million has been recovered.

The Prime Minister emphasized that professional taxes and excise duties have enormous potential and therefore special attention should be paid to their recovery by ensuring transparency and efficiency.

Murad instructed the minister to propose revised tax rates and explore new tax options that could be included in the upcoming budget.

Published in The Express Tribune, April 21st2024.