Over Rs10 bn of property, motor vehicle taxes collected from Karachi in FY2020-21

KARACHI: Over Rs10 billion has been collected from Karachi in terms of the motor vehicle and property taxes during the outgoing fiscal year of 2020-21, ARY NEWS reported on Sunday.

According to details shared by the Sindh excise department, an amount of Rs8.521 billion was collected from the business hub of the country in terms of motor vehicle tax as compared to Rs494.174 million collected from Hyderabad, Rs233.420 million from Sukkur, and Rs92.363 million from Shaheed Benazirabad.

Similarly, a total of Rs1520.132 million was collected in terms of property tax from Karachi, followed by Rs77.334 million from Hyderabad.

It is pertinent to mention here that Karachi is a major tax contributor for the national and provincial exchequer and a report in September 2020 shared that Saddar Market, the port city’s commercial hub, remained the highest contributor of taxes during the Tax Year 2018 with as many as 72,339 filers of tax returns.

According to the Federal Board of Revenue’s (FBR) Tax Directory for the year ending on June 30, 2018, the Saddar market paid a whopping Rs77.20 billion worth of taxes.

According to the FBR, Sindh remained the highest contributor of taxes (45 percent) during the TY 2018, followed by Punjab that contributed 34.99 percent in the tax collection during this period. The Capital Territory contributed 14.77 percent in the overall taxes of the FBR, Khyber-Pakhtunkhwa 3.54 percent, while Balochistan province contributed 1.67 percent in income tax returns for the tax year 2018.