The NWFP Department of Excise and Taxation has failed to recover property tax, house tax, tobacco development cess, token tax on registration of vehicles and other taxes, amounting to Rs 113.193 million during 2004-05 financial year, said an audit report on the accounts of revenue receipt.
The report, has been prepared by the Auditor General of Pakistan under Article 169 of the Constitution of Pakistan 1973 read with section 12 of Auditor-General's (functions, powers, terms and conditions of service) Ordinance 2001.
The audit was conducted by the Director General of Audit, Revenue Receipts (North), Lahore, during 2004-05 on test check basis, with a view to reporting significant findings to the stakeholders.
The report said that the department had failed to recover arrears of property tax, amounting to Rs 22.824 million, which was due under section 16 of the NWFP Urban Immovable Property Tax Act, 1958, non-paid property tax is to be recovered as arrears of land revenue. The provision of the Act was not enforced in 813 cases where property tax was not deposited within the stipulated time and an amount of Rs 25, 694,007 was not recovered as arrears of land revenue during 2003-04.
The report concerned the Excise and Taxation offices during April 2004 to May 2005 and to the Secretary, Excise and Taxation Department during October 2004 to July 2005. The department reported a recovery of Rs 4, 157,951, out of which Rs 2,869,850 were verified in Developmental Accounts Committee (DAC) meeting held in March 2006, leaving recoverable balance of Rs 22, 824,157.
The department also failed to recover Rs 20.042 million in the head of property tax from autonomous bodies like PTCL, PDA, PTB, FDC and PICIC Bank, which were not exempted from the payment of property tax and did not initiate legal proceedings under section 16 of NWFP Urban Immovable Property Tax Act, 1958. The Excise and Taxation offices of certain districts did not recover property tax of Rs 22, 300,071 from different authorities, during 2003-04.
The irregularity was pointed out to the concerned officers during July 2004 and May 2005 and to the Secretary, Excise and Taxation Department during October 2004 to July 2005. But, the department reported a recovery of Rs 22, 258,441, which were verified by DAC meeting of March 2006, leaving recoverable balance of Rs 20, 041,630.
The offices of department also failed to realise the 15 percent provincial government's share of the property tax from cantonment boards and deprived the province of Rs 1.975 million. Under Presidential Order No 13 of 1979 of August 22, 1979; 15 percent of net proceeds of property tax collected by a cantonment board within its limits, is payable to the provincial government concerned.
In violation of these provisions, five excise and taxation offices did not recover the 15 percent provincial government's share of property tax amount of Rs 2,974,664 from the cantonment boards. As regards property tax, the department failed to carry forward the outstanding amount from previous to current demand register, showing Rs 1.332 million losses to the department and the province.
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