The city administration managed to collect a meagre Rs200 million under advertisement tax during first half of fiscal 2011-12, only 17% of the entire target of Rs1.2 billion.
“First few months are always lean when it comes to collection,” said
an official of the advertisement department. “We will now push hard to raise more money.”However, KMC sources say Karachi will continue to remain in financial distress as uncertainty looms over the local government system.
“Officials responsible for collection of various taxes have adopted a laidback attitude,” remarked a senior official.
Outdoor advertisement tax is the second largest source
of income for KMC after property tax.
Administration to
increase taxes
Nevertheless, KMC plans to start a fresh campaign this month to raise taxes from people using city infrastructure and availing other services like garbage collection, another senior official said.
KMC says the money collected is the fee for provision of fire brigades and keeping the streets clean.
The move to restart collection of fire and conservancy charge comes as the authority is reeling under a financial crunch, which has seen its employees wait for months to get salaries and work on major projects suspended.
“I know people won’t like this especially at a time when there are so many civic issues but we need the funds,” said the official.
The charge was imposed in 2010 but discontinued last year as the fate of local government system remained undecided. “In a year and a half since municipal service charges were imposed and letters were sent to the people on quarterly basis, the KMC has collected Rs380 million against target of Rs4.5 billion,” the official said.
Municipal charges department has a reason for taxing people, he said. “You pay a sweeper Rs250 every month for removing garbage from your house but don’t consider the cost incurred by KMC, which uses a dump truck and burns fuel, to take that garbage miles away,” he said.
Up till now, only 1.2 million consumers have been identified for paying municipal charges. “Our recovery has remained 100% from Gulshan-e-Iqbal,” he said.
KMC will undertake a fresh drive to enlist more flats and houses in the city of 20 million people.
Published in The Express Tribune, January 3rd, 2012.
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