Rs60m kitty: LG ministry eyes KMC’s parking revenue

Under proposed plan, excise dept to levy annual ‘road user tax’ instead

KARACHI: The Sindh government plans to deprive the Karachi Metropolitan Corporation (KMC) of another source of its revenue along with the powers to collect parking fees in the city.

A press statement issued by KMC last week revealed that the corporation would no longer collect charged parking fees in the city, and instead the levy will be collected along with the annual motor vehicle tax by the excise and taxation department (E&TD).

The statement said the orders were issued on the directives of local government minister Jam Khan Shoro. It further informed that the KMC was currently providing charged parking facilities at 41 sites across the city generating an annual revenue of Rs60 million.

A senior KMC director told The Express Tribune on the condition of anonymity that the decision was just another tactic of the Sindh government to rob the KMC of the very little powers it is left with.

The director was of the opinion that with the suspension of the parking fees' collection, the revenue would be collected by the Sindh government and the KMC would be at their mercy in terms of how much they share with it.

'KMC will be dead'

The official said if the plan goes through, they would be forced to plead the Sindh government for funds to pay salaries to their employees whereas the charged parking department at KMC would also become dormant.

"KMC will be dead after this," he warned.

Regarding the fate of KMC's parking department, the local government minister said it would have to be closed down and their staff would be adjusted elsewhere.

Responding to a query regarding who would pocket the revenue collected from the tax, Shoro explained that the E&TD would hand over the funds to the KMC.

The minister clarified that the suspension of parking fees was a proposal and they would formally meet the E&TD officials soon to give the whole plan a proper shape.

'Road user tax'

Meanwhile, despite the announcement, the collection of charged parking fees continues unabated throughout the city. A parking fee collector outside the Civic Center, the KMC's head office, told The Express Tribune that they have received no suspension orders.

Charged parking department director Akhtar Sheikh confirmed to The Express Tribune that no suspension notification has yet been issued. He said whenever the order is issued they would immediately cease collection of parking fees.

He explained that contracts to collect parking fees have been awarded to various private parties till June.

The suspension proposal and subsequent collection of fees through a motor vehicle tax by the E&TD is under discussion, he said, adding the levy could be given the name of a 'road user tax'.

E&TD director Shahabuddin Khatri said he has only heard on the media about the collection of charged parking fees through his department in the form of an annual motor vehicle tax.

He explained that they already give a portion of the annual motor vehicle tax collected by them to the KMC to maintain the city's roads.

Cantonments' parking

The KMC official explained that despite the collection of parking fees in the form of a tax, commuters would still have to pay parking fees in cantonment areas, where collection has not been suspended.

The local government minister also said the cantonment areas were a federal subject, adding that they would also ask them to suspend their parking fees, and if they disagreed, cut a suitable proportion from the proposed tax.

Published in The Express Tribune, May 10^th, 2016.