Law permits government to collect, impose tax on agriculture sector: minister

Existing law permits the provincial government to collect or impose tax on agriculture sector, Sindh Finance Minister Syed Murad Ali Shah told business community on Tuesday. Addressing members of Karachi Chamber of Commerce and Industry (KCCI), he said that however, there were some problems, which were hindering collection of agriculture tax.
"If these problems are removed there will be no hitch on imposition and collection of taxes from agriculture sector," he opined. He advised the trade bodies to send their budget proposals within 10 days so that these could be examined and incorporated into the provincial budget.
Shah said he has called a meeting on Wednesday with representatives of KCCI, officials of Excise and Taxation and Revenue departments to discuss budget-related issues and proposals. A separate department, Sindh Board of Revenue, has been created to collect general sales tax on services. He said the service of a retired member of Federal Board of Revenue (FBR) had been acquired to run the newly created department efficiently.
"Under the 18 Amendment, now it is the prerogative of provinces to collect GST on services," he added. Referring to federal tax collection, he said the federal government collects around Rs 2 trillion taxes out of with Karachi alone contributes Rs 1.2 trillion, but Sindh gets only Rs 50 billion.
He said that power generation from Thar coal was expected by 2016 and by the year 2020 around 10,000 MW would be generated. The minister further said that the government was computerising Sindh Board of Revenue to streamline the record of revenue collection and disbursement. The minister appreciated suggestion of Leader of Businessmen Group (BMG) Siraj Kasim Teli to increase minimum wages to Rs 10,000 per month and said that PPP government would continue its efforts for betterment of labour.