Why is Sindh the Primary Focus for Toll Taxes in Pakistan?

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Why is Sindh the Primary Focus for Toll Taxes in Pakistan?

The imposition of toll taxes in Sindh has become a contentious issue, sparking debates on federal policies, economic distribution, and provincial rights. This matter significantly impacts the daily lives of Sindh’s residents while raising concerns about the transparency and fairness of federal practices.

Establishment of Toll Taxes: The Law and Its Principles

The primary objective of toll taxes is to generate revenue for the maintenance, repair, and development of highways. In Pakistan, the responsibility for toll tax policies and collection lies with the National Highway Authority (NHA) and provincial transport authorities.

Legal Framework

The Highways Act of 1956 and the NHA Ordinance of 1991 outline the principles for toll tax collection.

Toll taxes are levied on vehicles traveling on highways managed by federal or provincial authorities.

The collected revenue is legally mandated to be used for the upkeep of the specific roads from which it is collected.

Adherence to Legal Protocols and Transparency Issues

The enforcement of toll taxes must align with legal protocols, such as:

1. Utilizing the collected funds exclusively for the development of the relevant highway or region.

2. Publishing reports and audits for public awareness to ensure transparency.

3. Maintaining accurate records of toll tax collection and expenditures.

 

In Sindh, however, questions about transparency and the utilization of funds persist, leading to public mistrust and dissatisfaction.

Ground Realities: The Unfair Burden on Sindh

Sindh, particularly Karachi, serves as the economic hub of Pakistan, bearing a disproportionate share of the toll tax burden.

Economic Significance of Sindh

1. Cargo Traffic:
Over 70% of Pakistan’s imports and exports are routed through Karachi’s ports, resulting in heavy freight traffic on Sindh’s highways.

2. Pressure on Infrastructure:
Major roads like the Super Highway (M-9) and the National Highway (N-5) endure excessive traffic, leading to wear and tear.

3. Deteriorating Road Conditions:
Despite the continuous collection of toll taxes, many of Sindh’s highways remain in poor condition, with inadequate maintenance and repair work.

 

Concerns and Rights of Sindh

Revenue Allocation Disparities

A significant portion of the toll tax revenue collected from Sindh flows into federal accounts, with minimal reinvestment into the province’s infrastructure.

Road Maintenance Neglect

Despite consistent toll tax collection, the condition of Sindh’s roads continues to deteriorate, exacerbating the grievances of its residents.

The Matiari Toll Plaza Controversy

A recent example of toll tax-related issues is the establishment of a new toll plaza in Matiari District, which has been met with widespread public criticism.

Public Reaction

Transporters and traders have called the decision unjust and organized protests against the new toll tax, citing it as an additional financial burden.

Economic Impact

The new toll tax has increased operational costs for transporters, leading to inflationary pressures on goods transported through these routes.

Conclusion

The issue of toll taxes in Sindh reflects broader concerns about economic justice, infrastructural neglect, and federal-provincial dynamics. The lack of transparency in toll tax collection and spending raises valid questions about governance and fairness. Sindh’s residents deserve equitable policies that ensure the revenue generated within the province is reinvested for its development and the maintenance of its roads. Addressing these concerns is critical to fostering trust and achieving sustainable progress for the province and the nation.

By Abdul Ghafoor Sarohi

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