Despite the provision in People's Local Government Ordinance (PLGO) 2012, district and taluka councils failed to collect various local taxes, which result in some Rs 1 billion revenue losses to Sindh government.
The second schedule of PLGO 2012 states: "District councils would collect Education tax, Health tax, Tax on vehicles other than motor vehicles, any other tax authorised by the Government, local rate on lands assessable to land revenue, fees in respect of schools, colleges, and health facilities established or maintained by the district government, fees for licenses granted by the district government, fees for specific services rendered by a district government, collection charges for recovery of tax on behalf of the government as prescribed, toll on new roads, bridges, within the limits of a district, other than national and provincial highways and roads."
The part-II of second schedule of PLGO 2012 states: "Taluka and Town Councils would levy local tax on services, tax on the transfer of immovable property, property tax on annual rental value of buildings and lands, fee on advertisement, other than on radio and television, and billboards, fee for fairs, agricultural shows, cattle fairs, industrial exhibitions, tournaments and other public events, fee for approval of building plans and erection and re-erection of buildings, fee for licenses or permits and penalties or fines for violation of the licensing rules, charges for execution and maintenance of works of public utility like lighting of public places, drainage, conservancy, and water supply, fee on cinemas, dramatical, theatrical shows and tickets thereof, and other entertainment, collection charges for recovery of any tax on behalf of the Government, District Government, Union Administration or any statutory authority as prescribed."
Similarly, the part-III of PLGO 2012 states: "Union Councils would collect fees for licensing of professions and vocations, fee on sale of animals in cattle markets, market fees, fees for certification of births, marriages and deaths, charges for specific services rendered by the union council, rate for the remuneration of Village and Neighbourhood guards, rate for the execution or maintenance of any work of public utility like lighting of public places, drainage, conservancy and water supply."
A senior official of the department said that PLGO 2012 was a comprehensive law for local government but unfortunately it was not implemented particularly in relation to tax collection. He said that when PLGO was promulgated, it was estimated that local councils could generate revenue up to Rs 1 billion in the head of various taxes but not a single penny was collected despite the passage of financial year 2013-14.
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