KARACHI - The CDGK authorities are still indecisive and indifferent with regard to the implementation of new policies, designed to make the organisation financially strong, due to the lack of incompetence and interest of its officials, informed sources confided to The Nation on Tuesday. The CDGK had planned to adopt new policies to overcome the financial crisis, especially during the tough period when majority of its employees were facing delay in their salaries. The steady decline in the CDGK revenue was caused due to stagnant resources, which forced the authorities concerned to explore new vistas to increase its income. The basic objective behind this approach was to sustain the finances of the organisation required to carry out development projects. But the situation has aggravated now after a tussle started between the CDGK and Sindh government. On the other hand, the concerned high ups, responsible for generating and increasing the CDGK revenue, failed to achieve their target. It may be noted that CDGK finance department, before making the budget for FY2009-10, was working to explore new avenues for generating and increasing the income of city government and had prepared a plan in this regard. But it could not be implemented after differences arose between the provincial and city governments. The sources in the city government said that various proposals were in process to increase revenue. Keeping in view the future requirements, CDGK had planned several mega projects in the social sector but due to the ongoing political situation of the country, it failed to start work on them. However, the CDGK introduced municipal services tax and enforced the collection of KWSB taxes. To achieve the uplift targets in various fields and to translate the policies into action, and also to provide maximum services to the people, all out efforts are being made to mobilise resources to generate funds, sources said. At present, the CDGK is facing more than Rs 3 billion shortfall of funds due to deduction in the head of OZT and Single Line Transfer System and 20 % increase in the salaries and pensions of its employees. Sources added that in order to supplement the financial position of CDGK, following steps had been proposed to enhance the revenue but change in political situation of the country affected this plan. CITY DEVELOPMENT TAX The CDGK is not levying any tax on fuel consumed within its limits however its nominal fee can provide handsome revenue. It was proposed that new tax under the name of City Development Tax on POL consumption should be levied for 10 paisas per litre. But it could not be implemented due to change in political situation of the country. CDGK may recover this tax directly from the POL companies operating within its jurisdiction. SEA TAX Prior to the introduction of octroi in 1969, the defunct Karachi Metropolitan Corporation (KMC) was collecting Terminal Tax on goods imported within its limits. However, after imposition of Octroi, the said tax was no more required. However, in 1999, the federal government abolished this octroi across the country and due to which the KMC sustained huge loss in its revenue. In order to continue development projects, it is necessary for the CDGK to have its own revenue resources, which could provide sufficient funds to meet its expenditures. It is proposed that a tax on import of goods from abroad by sea and air may be levied at the rate of 1 per cent on the actual value of goods which shall provide sufficient fund to CDGK. CDGK PETROL PUMPS ON COMMERCIAL BASIS The CDGK could also run petrol pumps on commercial basis to enhance its income. Since the use of CNG is increasing rapidly, it seems feasible if mini CNG stations are established on important roadsides. POULTRY FEE The poultry shops throughout the City are also acting as slaughterhouse. It is proposed that all such shops should be registered and a registration fee plus some annual charges would bring enormous revenue for the City Government. CYBER/INTERNET CAFES The Cyber/Internet Cafes have mushroomed throughout the City with the advent of information technology. As the owners of these cafes are doing a roaring business, so a nominal fee could also be charged from these cafes through proper registration. A lot of ISPs have also emerged and are deriving handsome income. It shall be feasible if they are properly registered and a registration fee is charged which would fetch a nice income INTERNET/TV CABLES The Internet Cable Operators as well as the TV Cable operators are conducting businesses on quite a large-scale. They do not pay any land rent or any other charges for utilising CDGK facilities. In case, they are properly registered inflicting the registration fee and the land rent, it will fetch considerable income. RAFFLE SCHEME A raffle scheme of a bond/ticket of Rs10 denomination if launched by CDGK inviting funds from the general public for development works, may contribute some good amount. SERVICE CHARGES Running the affairs of an international and a port city, the CDGK has to maintain the roads to provide safe passage to vehicular traffic. The Sea and the Airport are being used for import of goods for the entire country and loaded trucks and trailers use these roads without paying any tax. It is necessary to levy tax on such vehicles carrying goods cleared from the sea and airport at rate of Rs100 per truck, Rs200 on each trailers and Rs50 from Datsun and other light cargo handling vehicles. CDGK TO ACT AS A BUILDER The city district government could also venture on the construction side by building shops/commercial plazas/parking lots on the City land, which would generate handsome revenue.