The deteriorating law and order situation of Karachi has badly affected collection of entertainment duty by Sindh Government. Provincial Excise and Taxation department, which use to collect the duty (tax), collected only Rs 17.372 million under the head of 'Entertainment Duty' during the fiscal year 2011-12.
While during the current fiscal year (2012-13) till January the department collected Rs 17.372 million. The department may collect around Rs 22 million till the end of current fiscal year. When Shoaib Siddique, Director General Excise and Taxation Sindh, was contacted he confirmed the negative impact of law and order situation on collection of the duty.
He said that about 10 years ago, Karachi's law and order situation was quite good as compared to the current situation and cinema houses were doing good business, besides musical nights and others entertainment programmes. Due to this the department used to collect healthy amount under the head of entertainment duty, he added.
The situation not only affected collection of entertainment duty but almost all taxes. Giving break-up of tax collection by the department, DG E&T said that the department collected Rs 1754.796 million in FY 2011-12 under the head of mortor vehicle tax while in just seven months of current fiscal year (2012-13) the collection reached at Rs 1888.006 million.
Similarly, he said that collection of Excise duty in FY 2011-12 was Rs 1263.369 million, which reached at Rs 1562.979 million during the first seven months of current fiscal year, collection of infrastructure cess in FY 2011-12 was Rs 9054.647 million and up to January 2013, it reached at Rs 10094.647 million, Cotton fees collection of FY 2011-12 was Rs 48.906 million now it reached at Rs 113.684 million.
He said that professional tax collection was Rs 170.141 million in FY2011-12, and now it reached at Rs 168.749 million, hotel tax collection was Rs 83.678 million in FY2011-12 while currently it reached at Rs 86.354 million, property tax collection was Rs 1052.282 million which reached at Rs 1069.197 million in the seven month of current fiscal year.
He said that the department was planning to computerise collection systems of six more taxes including entertainment duty from the first week of April 2013. "This step will make a big difference in revenue collection of the provincial government," he added.
To a question regarding the role of Excise police, Shoaib Siddique said that Excise Police was supporting other staff in every matter including recovery.