The Government of Sindh and Karachi Stock Exchange (KSE) have formed a working committee to review and facilitate the overall tax collection and payment system in the province after tax collection was devolved to federating units under the 18th Constitutional Amendment.
The committee was constituted by Sindh Finance Minister Murad Ali Shah and KSE Chairman Muneer Kamal during a meeting Monday when the former visited Karachi bourse to meet its Board of Directors. The Provincial Capital Market Tax Working Committee (PCMTWC), which would comprise members from the KSE and the finance division of Sindh government, would look at the specific details with an overall vision of taxpayer facilitation, while striving for the payment efficiency.
The need for PCMTWC was realised after possible changes in the tax regime related to the collection of general sales tax on services that after the implementation of 18th Amendment would be shifted from federal to the provincial governments.
On the occasion, the two sides discussed matters of mutual interest with the finance minister highlighting the post-devolution scenario in the tax regime. The finance minister said that in future, the existing Federal Excise Duty (FED) would be substituted by the provincial sales tax at the same rate. He dispelled any impression that there would be double taxation in this regard.
In the meeting, provincial government officials outlined the change in methodology of tax collection once certain issues were clarified at the federal level in a few days. The finance minister emphasised that his government did not want to impose any additional burden on taxpayers nor introduce any cumbersome procedures in the collection methodology so that taxpayers would not face any disruption.
The KSE directors and members assured the provincial minister that being residents of Sindh, the Karachi bourse was part and parcel of the province’s economic landscape and would ensure that all due taxes related to the provincial government from the capital market were paid in time and to the full extent. KSE MD Nadeem Naqvi also presented a memento of a miniature Mughal painting to the finance minister.
Shah was greeted by KSE Chairman Muneer Kamal and Managing Director Nadeem Naqvi in the presence of senior KSE members, Aqeel Karim Dhedhi, Arif Habib, Yasin Lakhani and Ferozuddin Cassim. The finance minister was accompanied by Provincial Finance Secretary Naveed Kamran Baloch, Sindh Bank President Bilal Ahmed Sheikh and Sindh Revenue Board Member Mumtaz Sheikh.
