LAHORE: The Punjab government has proposed to levy an infrastructure development cess on the `goods manufactured, produced or consumed in the province, goods imported into or exported out of the province` The cess will be collected at a hxed rate of 0.90pc of the total value of the goods as assessed for the Customs purpose, and will be used for maintenance, development and improvement of the infrastructure in the province.

The government tabled the bill on Friday in the provincial assem-bly for its imposition along with the budget for the next fiscal. The passage of the bill is expected to substantially raise the cost of manufacturers, producers, exporters and importers from Punjab and push inflation.

Imported fresh food items like vegetables and fruits will however be exempt from payment of the levy. The non-payment of the cess will automatically invite imposition of penalty on the defaulter.

Punjab Finance Minister Dr Aysha Ghous-Pasha told Dawn that the infrastructure cess had been the main source of revenue for Sindh since 1994. `Khyber Pakhtunkhwa also has imposed the levy.` She did not agree that the imposition of the cess would affect the manufacturers and exporters from Punjab who are already reeling under rising cost of doing busi-ness and energy shortages as it had not hurt them in Sindh.

The bill said Punjab had great potential of generating income from the levy. The collection of the proposed levy would be made through the automated system of Pakistan Customs under connectivity with the computer system of the Punjab Revenue Authority (PRA).

FINANCE BILL: The Punjab government has proposed to bring 10 more services into the net of provincial general sales tax from the next financial year. The Punjab Finance Act 2015 said the services brought into the GST net included public relations services, services provided by chartered accountants, auditors, corporate law consultants, etc, air traveland transportation of goods by air, chartered flights, hiring of equipment and machinery services, debt collection services,supply chain management services, photography services and sponsorship services.

The bill said the inclusion of these services into the tax net would bring equity to the provincial sales tax base and harmonise the service tax system in Punjab with other provinces.

The finance bill also proposes rewards and prize schemes for informing on tax evaders and punishments for the tax dodgers. The bill also does away with exemption on immovable urban property valuing Rslm from capital value tax and abolished education cess on clubs to prevent double taxation and hardship to them.

The minister said the government was now focusing on improving tax collection rather than increasing taxes for collecting more revenues.