Flood tax bill to be tabled soon, says CM’s adviser

The floods caused losses worth $9.78 billion, out of which Sindh suffered 45 per cent, said official.

KARACHI: A bill on flood tax will be tabled in the Sindh Assembly soon, said Adviser to Sindh Chief Minister on Planning and Development Dr Kaiser Bengali on Tuesday.

Flood tax is not a new tax but it is a one-time extra surcharge to be collected on land, agriculture and other services, he explained.

Dr Bengali was speaking at a press conference at Sindh Secretariat along with Adviser Sharmila Farooqui. They informed the media about the rehabilitation and reconstruction plans of the government that were presented at the Pakistan Development Forum on November 14.

The government has a financial strategy, under which additional revenue will be generated through a reduction in non-development and development expenditures, public-private partnership and foreign assistance, he said. “We have Rs40 billion just by cutting 50 per cent from the Annual Development Plan and non-development expenditure,” he said. The budget for the coal project will not be touched, he added.

Dr Bengali clarified that the “Sindh government has never opposed Reformed General Sales Tax but our stand is that, under the seventh NFC award, provincial government should have the right to collect taxes”.

According to Dr Bengali, the Sindh Revenue Board has yet to start its operations as the government lacks resources. “Since we don’t have a database, we have asked the Federal Board of Revenue to collect taxes on services, including advertisement, financial service and construction,” he said. Fifty per cent of the share will be given to Sindh government, he added.

The federal government is willing to collect taxes on telecommunication and court services but negotiations with the governments are under way, he said.

Floods caused losses worth $9b

The floods have caused losses worth $9.78 billion, out of which Sindh suffered 45 per cent of the losses, said Dr Bengali.

Referring to the presentation during Pakistan Development Forum, Dr Bengali said that the Asian Development Bank and the World Bank appreciated the government’s strategies and extended their full support.

According to government data, 18 per cent of the province came under water during the two-month-long floods and 10 per cent of this area is likely to remain submerged until March 2011.

Dr Bengali explained that the government’s priority is to clear and repair canals and waterways, dewater settlements and fields, restore communication system, strengthen embankments and provide safe drinking water to the survivors.

Another aspect of strategic intervention includes economic revival, through which credit, dry rations, fodder, seeds and fertiliser for sunflower and wheat will be given to the affected people. The government focuses on five sectors: irrigation, roads, health, education and municipal infrastructure, he said.

“Initially we are focusing on the big-push approach to initiate big projects and create livelihood by establishing industries in rural areas,” Dr Bengali said. “For this, 19 highways of international standards are being developed with public-private partnership and houses will also be rebuilt with the help of NGOs.”

Dr Bengali assured that there will be no corruption in these projects because of the public-private partnership. The government is creating two “escape routes” to divert the floodwater. Repairs of Sukkur Barrage and installation of spillways in Manchar Lake will also be carried out.

“Given the energy crises in the country, the government has decided to set up small power generation plants on those canals which have a good velocity of water,” he said. The plant will generate two to 20 megawatts of electricity, he added.

The economist also suggested that farmers grow sunflowers in those areas where it is not possible to grow crop in order to minimise the imports of edible oil. He assured that the government will provide seed and fertiliser. The government plans to rehabilitate 1,500 schools that comprise five-room schools. Villages with over 100 households will be given priority and there are around 3,000 of such villages, he said.

Published in The Express Tribune, November 24^th, 2010.