Tax on billboards?

Letter June 05, 2011
Is there anyone who can educate me regarding the logic behind this tax?

KARACHI: I am a responsible taxpayer of this country. I have a shop located in a commercial area of Karachi. I had a Panaflex signboard made with the name of my shop written on it (for Rs30,000) and got it fixed at the front of my shop. Among the taxes I pay are income tax, labour tax, general sales tax, professional tax, water tax, various utility charges, television licence fees and various other levies.

It is important to note that GST has been charged in the bill by the signboard manufacturing company for the said board. I am unable to understand under which law the City District Government of Karachi’s (CDGK) local tax department, has issued me a challan under the head of ‘Shop board (devices)’ for the amount of Rs29,000 per year (to be paid every year till the sign remains there), as a tax on the sign board.

It is important to note that the said board is affixed on my own premises and it is not installed on any road or footpath or any pole or billboard or on any of the CDGK sites. I have tried my level best to inquire from the respective town office regarding the law under which I am being charged for this tax. Rather than getting any satisfactory reply, I was advised to grease the palms of the concerned office staff to get my bill halved and when I refused they advised me to pay the entire bill or otherwise get ready for their team that would remove the said sign.

Is there anyone who can educate me regarding the logic behind this tax and also what facility or space or utility or service the CDGK or any other government department is providing me regarding this sign board for which they expect me to pay this tax.

Raheel Kamran

Published in The Express Tribune, June 6th, 2011.