Power tussle comes in the way of revenue authority

KARACHI - The plan of establishing Sindh Revenue Authority may not materialize due to power tussle among the bureaucracy and ministers in the province. The proposed SRA, if established, would deprive various provincial departments from collecting revenues and shift the pattern of malpractices and corruption from departments to SRA. Resultantly, the provincial revenue collecting departments were making all out efforts to foil the plan of establishing the Sindh Revenue Authority, official sources  told The Nation on Wednesday. A senior official confirmed that the proposal of the formation of Sindh Revenue Authority is being pursued on the advice of the WB for the past few years. The previous government also tried to establish the authority and got necessary approval from the cabinet, but in its five-year tenure the previous provincial government could not achieve this milestone, he said. The new Sindh government had also started efforts to set up a Sindh Revenue Authority on the pattern of Federal Board of Revenue aiming to improve and mobilise revenue collection mechanism under one roof collection system of taxes on modern lines. The provincial government had issued a notification for setting up of new revenue authority to merge the Board of Revenue Sindh, Excise and Taxation Department and other departments into the proposed authority. A committee headed by provincial minister for Revenue and Relief Syed Murad Ali Shah had been constituted to discuss the pros and cons of the proposal while minister for excise and taxation, senior member, Board of Revenue and finance and excise secretaries will act as member of the committee. With the formation of Sindh Revenue Authority, the total tax system now being managed by various departments separately, will come under one command of tax collection authority, an official said. This new system will enhance the efficiency of tax collection, he further said, adding that the leakages and loopholes in tax collection system will eliminate under one command authority. An official, who is part of this whole exercise while talking to The Nation, said some ministers and bureaucrats were the main hindrance in the way  of new tax collection system because they will lose their authority with new system. He pointed out that wrong doings will be minimized or controlled with new tax system as lot of corruption reported in the tax collection system at provincial level.     Reminding same exercise for formation of Sindh Revenue Authority in the previous provincial government led by PML-Q, MQM and other coalition partners, official said then were also suggested same Sindh Revenue Authority and nearly all the home work were complete but due to power tussle among the coalition partners it could not be came into being practically. "The provincial ministers and departments were opposing the proposal of SRA in previous government because their authority would exist no more after the formation of authority", Syed Sardar Ahemd then Senior minister and provincial Finance minister told The Nation, adding that the previous cabinet also approved the formation of single revenue authority but it could not give it a practical shape. Sardar Ahmed who is currently provincial minister without portfolio supported the idea of establishment of Authority and said the overriding objective was to tap the optimum revenue potential of the provincial through these reforms. The World Bank had advised steps for establishment of single revenue collection authority aiming to control the leakages in transparent tax collection system, he confirmed and said that WB had not suggested this step for any condition but to improve the tax and fiscal system of the province. He suggested that government should constitute a Provincial Fiscal Coordination Committee which must be responsible for evolving, coordinating and implementing the broad fiscal policy of the government especially the provincial revenue generation portfolio.  The committee should be responsible for setting the fiscal targets of various taxes and non-taxes would monitor the revenue collection of the various collections of the provincial revenues on a regular basis, he said. Sardar Ahmed also showed doubts in the establishment of single revenue authority and termed it a challenge for government as the previous provincial government could not complete this task due to hindrances of bureaucracy and coalition partners.

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