SRB tasked with boosting KMC revenue

Sindh Chief Minister Syed Murad Ali Shah directed the Sindh Revenue Board (SRB) on Thursday to explore means for collecting local taxes on behalf of the Karachi Metropolitan so that it could be financially strengthened.

The CM issued the instruction while presiding over a meeting called to address issues pertaining to pensions in local bodies such as the KMC, district municipal corporations and Karachi Development Authority, among others.

In the meeting, the CM was informed that the KMC had 12,900 employees and their salary bill was more than Rs560 million. He was told the pension bill of KMC employees was Rs330 million, but recoveries remained low in comparison to expenditures.

Sindh Local Government Minister Syed Nasir Hussain Shah pointed out that while the KMC was paying pensions to former employees on a regular basis, it was facing problems in the payment of gratuity. The CM directed the local government department to resolve the issue after consulting the finance department and report to him.

Then, turning his attention to the issue of recoveries, the CM stressed the need for the KMC to boost its recoveries. "The finance department would provide it with necessary funds if there is a lack of funds for the payment of outstanding gratuity," he added.

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Directing the SRB to explore means to start local taxes for the KMC, the CM asked the local government secretary to hold a meeting with the provincial revenue board for this purpose.

He mentioned the funds being paid to the KMC by the Sindh government under different heads and said, "We are fully supporting the metropolitan corporation, but it has to become a better organisation by rationalising its expenditures and improving its performance."

The CM directed the KMC to digitise its property data via geo-mapping and regularise its unregistered markets and shops.

Besides, the KMC should conduct a survey to improve its rental rates in accordance with the present market value, he said, adding that the local body should also consider setting up fuel stations and malls on lands owned by it in the public-private partnership mode.

When Sindh Agriculture Minister Ismail Rahoo apprised him of the pension issues of the retired employees of market committees and the Sindh Seed Corporation, the CM directed the chief secretary to provide one-time relief and then work out a plan to ensure that the said organisations paid salaries, pensions and gratuities from their accounts in future.

Published in The Express Tribune, February 26^th, 2021.