Staff Reporter The Government of Sindh has decided to impose a new tax on use of water in the province, citing sources on Tuesday. The government is going to slap the water tax over use of the underground water, sources said. A draft of law comprises recommendations for the proposed tax has been prepared and the officials of local government department will brief the members of the provincial cabinet over the upcoming Sindh Water Tax Act in a meeting. The draft of the law suggests one rupee per litre tax on water, sources said. The tax will be recovered from the mineral water companies, according to sources. Proposed tax will also be recovered from the soft drinks manufacturing companies, sources said. The revenue generated by the proposed tax will be distributed among the Karachi Water Board and the Water and Sanitation Agency (WASA), sources added. The Supreme Court had dissolved its commission on water and sanitation in Sindh in February and directed the provincial government to implement recommendations of the commission for proper use of water resources and improve the sanitation system. A three-judge bench headed by Chief Justice Gulzar Ahmed also directed the chief secretary of Sindh and the provincial law officer to file a comprehensive report after one month regarding compliance of the commission’s recommendations. The court disposed of the main petition filed in 2016 with other applications on the water and sanitation system in Sindh. Last year, the Sindh government has imposed sales tax on internet. “The Sindh Revenue Board has withdrawn the exemption of sales tax on services from internet and/or broadband services with effect from July 1, 2019,” said a notification of the Sindh Revenue Board (SRB). The notice has informed service providers that from July 1, all internet and broadband customers, irrespective of their speed or charges, will pay sales tax at the statutory rate of 19.5%.
