Department of Excise & Taxation

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Taxes

1.    Infrastructure cess

2.    Motor Vehicle

3.    Excise Enactments

4.    Professional Tax

5.    Hotel Tax

6.    Cotton Fee

7.    Property Tax

8.    Entertainment Duty

9.   Immovable Property Tax

Property Tax & Entertainment Duty devolved to Local Govt. under S.L.G.O. 2001

 PROVINCIAL TAXES

 1. Infrastructure Cess:

This Cess is levied and collected @ 0.5% C&F value of a consignment on the movement of gooks entering the province from outside the country though air or sea.

 2.  Motor Vehicle Tax

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

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

•            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.

 •        Every vehicle whether commercial or private is registered, is issued registration number, registration book and number plate.

   3. Excise Duty

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

  •   Intoxicating liquor (PMFL & Beer)

  •   Rectified Spirit.

  •  Denatured Spirit.

  •  Methanol.

     The Excise Enactments are as under:-

  • Prohibition (Enforcement of Hadd) Order, 1979.

  • Sindh Prohibition Rules, 1979.

  • Sindh Abkari Act, 1878.

Sindh Excise Manual framed under Abkari Act, 1878

4. Professional Tax

This tax is levied under the Sindh Finance Act, 1964. 

The basis of this tax is to bring various categories of persons engaged in different trade, callings and professions.

Category 1.    Rs.150/- per salaried person whose salary is taxable under Income Tax            Law.

Category 2.      All limited companies, modarbas, mutual funds and any other corporate body registered under Company Law. 

Category 3.    Importers and Exporters licence holder/owners of industry/factory and commercial establishments, contractor, suppliers, wholesaler, stockest,    medical practitioner, Architect, Accountant, Car Dealer, Real Estate    Agencies etc; (which should be on partnership or proprietorship).

Category 4.       Rs.500/- per annum  on the establishments which are not  Income Tax          assesses.

Category 5.       Rs.2500/= per annum on all petrol pumps/CNG filing stations.

5. Hotel Tax

 Hotel Tax is levied and collected under Sindh Finance Act, 1977. 

Hotel Tax is collected on advalorem basis @ 7.5% of room rent per  lodging unit per day at the occupancy ratio of 80%.

Every hotel management is required to furnish the particulars of their hotels on Declaration on Form H.T-I.

The District Excise and Taxation Officer assess the hotel on the basis of particulars declared on H.T-I Form as well as Inspection Report and issues challans for payment of Hotel Tax.

The assessed tax amount of the year is collected in 12 equal monthly installments before 5th of each month.

Any aggrieved may file an appeal before the Director within 30 days against the assessment order of the District Excise and Taxation Officer.

The powers of revision are with Director General, Excise & Taxation.  

 6. 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.

  7.PROPERTY TAX (DEVOLVED TO THE CITY DISTRICT    GOVERNMENTS         THROUGH SLGO 2001).

 

Property Tax is levied and collected under Sindh Urban Immovable Property. A uniform rate of tax for all categories @ 20% of the annual rental value (ARV) w.e.from 1.7.2001.

The tax is levied on lands and buildings situated in Urban Areas declared as Rating Areas by the Government.

More than 80% Property Tax is collected in 22 Divisions of Karachi and remaining from 41 rating areas of Interior Sindh.

Gross Annual Rental Value (GARV) of lands and buildings is the basis of property tax.  

10% maintenance allowance and certain rebates are allowed on the basis of        location, category and age period of construction in annual value.

The properties upto 120 Sq. Yds. and 600 Sq. Ft. Flats are exempted.

There is additional rebate to Widows, Minor Orphans, Disable Persons and Retired Government Servants.  

  8. ENTERTAINMENT DUTY (DEVOLVED TO THE  DISTRICT GOVERNMENTS    THROUGH SLGO 2001).

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

Entertainment Duty is levied on entertainment places like Cinemas, Amusements Parks, Varity Programmes and Sports.

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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