PHA to look for new avenues for revenue

Following the transfer of advertisement tax collection function to the local governments, the Parks and Horticulture Authorities (PHAs) have started exploring new avenues for revenue collection across the province.

Lahore PHA has once again decided to restore parking fee at its parks. The 19th meeting of the PHA Board of Directors (BoD) was held on Thursday, in which the authority decided to move a summary to the Punjab chief minister to impose parking fee at parks.

PHA BoD Chairman Yasir Gillani told The Express Tribune, the authority has to incur a loss of around Rs2.6 million monthly or over Rs31 million annually on account of the parking fee. He was of the view that if parking fee was restored as it would help stop bleeding money. However, the final decision would be made by the chief minister.

The BoD, he said, put forward various proposals to increase the revenue of the authority and it was decided to constitute a committee for further deliberations. Considering advertisers request in the backdrop of economic impacts of coronavirus induced lockdowns, the authority has approved one-month relief in monthly payments of digital media receipts.

He highlighted that the meeting also approved the annual budget of the authority for the financial year 2020-21. It approved a utility allowance for employees. The meeting also resolved to make the provincial capital greener and more beautiful, which is the real mandate or function of the authority, he maintained.

He disclosed that the meeting has also given go-ahead setting up a zip line in Jillani Park for adventure tourists. Responding to a question, he said the authority has approached the court for clarification because as per the PHA regulations the authority has a regulator function. “It is PHAs job to regulate outdoor advertisement sizes and placement as beautification of the city is one of its core functions.

The Punjab Local Government Act 2019, only talks about the collection of advertisement and billboard taxes, it does not speak anything about regulating outdoor advertisement,” he pointed out.

He said there was some confusion among the government agencies over the Rawalpindi High Court’s decision, deliberations are underway and soon the issue would be settled. Local governments, as per the act, would collect taxes while the authority would charge a regulatory fee. However, a proper mechanism and rates are not yet decided, he maintained.

Pakistan Muslim League-Nawaz government abolished parking and entry fee tickets during its previous term to promote healthy activities among masses. However, now the cash-starved government agencies are once again reversing these decisions.

Lahore PHA has over Rs3.5 billion budget and a major chunk of this money is earned through advertisement and sponsorships revenue. Most of these funds are spent on non-development expenditures for paying salaries to thousands of employees, most gardeners.

Following the transfer of tax collection function and missing revenue targets owing to the lockdowns, the authority is facing financial hiccups. The PHA was established in September 1998 with an aim to maintain and optimise the use of greenbelts, public parks, playgrounds and green areas throughout the vicinity of Lahore. Currently, the authority maintains around 828 public parks in all areas of the city and 276 green belts along major city roads.

Following successful experiment in the provincial capital, the government has replicated this model in around 10 big districts of Punjab, which not only help in improving beautification of the city but also help the government to generate revenue and new employment opportunities for an unskilled worker.

Published in The Express Tribune, September 25^th, 2020.