CM Sindh Issued Rs32.4 Billion For Development Projects, Octroi Zila Tax

On the orders of CM Sindh Syed Murad Ali Shah, the Sindh finance department has granted Rs32.4 billion to complete ongoing development projects. Local bodies have already received Rs6,007.609 million in Octroi Zila Tax share and grant-in-aid from the department.

Sindh is the country’s only province to unveil its budget in the first week of the new fiscal year 2021-22. Chief Minister Sindh mentioned this in a statement released from the CM Sindh House on Monday. In 1999, the federal government abolished the Octroi Zila Tax, and in its place, the federal government issued funds through regular fiscal transfers at 2.5 percent of the OZT. The share was low in comparison to the municipal responsibilities of local councils.

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CM Sindh further added, “Since the federal government abolished the Octroi Zila Tax OZT and the Sindh province receives low receipts in stead of OZT, the Sindh government has been continuously supporting all local councils in the province.” The provincial government had been releasing monthly Octroi Zila Tax OZT share to all local councils in the province in accordance with the PFC award announced in 2007, and subsequently as per tentative distribution approved by the government in 2016, which was then increased at a rate of 15% during the financial year 2017-18, in order to keep the councils financially viable.

Sindh has seven district municipal corporations, 24 district councils, one metropolitan corporation, three municipal corporations (Hyderabad, Sukkur, and Larkana), 39 municipal committees, 147 town committees, and 1,526 union councils/union committees. With effect from July 2021, the government has increased the share by 15% for the financial year 2021-22 and allotted Rs82 billion for salaries and pensions of employees of local councils for the current financial year 2021-22

According to the CM Sindh, the KMC share has been increased by Rs1,178.280 million annually, the share of seven DMCs in Karachi has increased to Rs13,015.836 million from Rs12,135.73 million annually, and the share of District Council Karachi has increased to Rs1,655.592 million from 1603.056 million with the revised Octroi Zila Tax OZT share as of July 2021.

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