Default in payment of property tax: excise department will issue notices to industries

Advisor to Sindh Chief Minister for Excise & Taxation, M. A. Jalil has directed the officials and staff of his department to issue notices to government corporations, big hotels, private hospitals and industrial concerns defaulting in payment of property tax and in case of refusal seize their properties.
The assessment of property tax would also be carried out of those concerns who have not yet been assessed so that they could also be made to pay the tax, he told newsmen at a press conference in his office on Friday afternoon.
Re-assessment of property tax would also be undertaken in such cases where under-assessment has been detected, he added.
Jalil said it has been an old and common practice of big corporations that they disconnect power supply, telephone lines and other utilities to Sindh government offices for non-payment of arrears but they themselves owe hundreds of millions of rupees to Sindh government on account of property tax.
He mentioned names of PTCL, Hyderabad Electric Supply Company, KESC, SSGC, PIDC, PTV etc who avoid paying the property tax.
To a question, he told that the PTCL owes Rs 310 million to Sindh government on account of property tax in Karachi alone.
To another query he said the preparations have been finalised and the notices would shortly be issued to complete the entire process by September 30, 2004.
Advisor told that collection target of property tax during last fiscal year was set at Rs 1.18 billion however Rs 1.4 billion could be collected as the government had announced exemptions to several categories of citizens. This fiscal year the target of Rs 1.45 billion has been set and it is expected that Rs 250 to 350 million would be collected in addition to that as a result of recovery campaign being launched against the corporations, hotels, industries, hospitals etc.
He revealed that hundreds of industries were not paying property tax despite issuing notices. These industries were located in Site, Bin Qasim area and other industrial zones in Karachi. In Bin Qasim area alone there were 163 industries that are defaulting in property tax, he told.
Likewise, there were big hotels in Karachi who avoid paying such tax despite the fact that they have been declared an industry and the KESC and Water Board use to charge them commercial rates.
The privately managed hospitals and schools have already been given concession by the government in property tax but even then they refuse to pay. He also referred to one of a big private hospital that has not paid a single penny since its inception.
He made it clear that this campaign was not targeted against common citizens and in case any E&T official harasses them, they should approach him directly.