Rs 16 billion revenue collection target not achieved: Sindh government seeks explanation from CDGK

The Sindh government has sent a letter to the City District Government Karachi (CDGK) in which they have sought an explanation from the city government regarding their failure to achieve the revenue collection target of Rs 16 billion set for the year 2009-10, Business Recorder learnt Friday.
Sources in Sindh's Finance Department said the MQM-led CDGK could only mange to collect Rs 6 billion revenue, and added that a failure of the city government in achieving the revenue collection target has put an extra burden on the provincial exchequer.
However, after analysing the causes that had led to this situation, the provincial government would prepare a strategy to enable the city government to overcome its financial problems, the sources said. They said the CDGK had imposed Public Utility Charges (PUC) on services being provided to Karachiites, however the residential and commercial units had given a cold response as only four percent Karachiites paid the new tax.
The CDGK also failed to collect those taxes which were imposed on transport, property lease, billboards etc, they added. Failure in achieving the revenue collection target was pointed out in the budget documents, for the year 2010-11, and was forwarded by Karachi's Administrator Lala Fazal-ur-Rehman to the finance and local government departments of Sindh, sources said.