ISLAMABAD: Ministry of Finance has framed draft rules, procedures for collection, reporting and monitoring of Non-Tax Revenue (NTR) in line with Section 40 of Public Finance Management Act 2019 and amended from time to time.
The Ministry has also sought comments from all the concerned stakeholders on the draft rules, prior to giving final shape.
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Section 40, chapter VIII A of PMF Act 2019 as amended in 2020 reads as:
40A: Policy and administration. The administrative Ministries and Divisions shall be responsible for policy formulation and administration of non-tax revenue as per the distribution of business approved by the Government. The Finance Division shall advise Ministries and Divisions in policy formulation as per the strategic priorities of Government’s revenue policies.
40B: Levy and collection. Non- Tax Revenue shall be levied and charged in accordance with the provisions of relevant laws and such other applicable instruments.
Notwithstanding anything to the contrary contained in any other law for the time being in force, public entities as defined under section 36 shall pay non tax revenue representing- (i) mark up on loans lent by the Government, as per the amortization schedule attached with the financing agreement; (ii) dividend against the Government’s equity investments as declared by the respective board of directors out of accrued profits of the entity provided that if public entity is wholly or substantially owned by the Government, proposals with regard to declaration of dividend and allocation for reserve fund, capital requirements, etc., shall be examined by the controlling Division in consultation with the Finance Division before deliberations and decision in the board of directors.
Surplus profits as per the provisions of relevant laws; and any other amount owed to the Government as accrued provided that the public entities shall pay accrued amounts of non-tax revenue as per clauses (a) to (d) being the first charge on their gross revenues or profits, as the case may be.
Non tax revenue representing foreign grants and payments, receipts from provision of services, rents, recovery of overpayments, sale of property etc shall accrue on completion of the prescribed process.
The revenue collection offices shall be responsible for collection of all the accrued amounts of non-tax revenue from liable public entities, individuals, firms, companies, etc., as per the time specified in the relevant laws and rules.
Finance Division shall prescribe procedures for monitoring and reporting of non-tax revenue by the revenue collection offices.
40C: Deposit in Federal Consolidated Fund. (1) Subject to section 40B, the revenue collection offices shall deposit the collected amounts in Federal Consolidated Fund promptly without delay in prescribed manner under the head of account specified by the Finance Division in consultation with the Controller General of Accounts. The revenue collection offices shall not retain or appropriate the collected amounts to meet departmental expenditures except through budgetary mechanism as provided under Articles 80 to 83 of the Constitution.
40D: Late payment surcharge. Notwithstanding anything to the contrary contained in any other law for the time being in force, an amount equal to monthly weighted financing cost of Government’s domestic borrowings shall be payable during the period of default, in addition to the amount due under section 40B, if not paid within the stipulated time. (Finance Division may prescribe procedure for levy and collection of the surcharge under sub-section (1).
40E: Recovery of non-tax revenue by Commissioner (Inland Revenue). If the amounts as per sections 40B and 40D are not paid within ninety days of having been due, the Finance Division, in consultation with the concerned Division may refer any defaulter’s case to the Commissioner (Inland Revenue) concerned for recovery as it were an arrear of income tax. The Commissioner (Inland Revenue) shall recover the arrear in accordance with the provisions of the Income Tax Ordinance, 2001(XLIX of 2001) and deposit the receipt in the Federal Consolidated Fund as per section 40C.
Role and responsibility of collection departmental officer/ staff will be as follows: (i) the collecting departmental officer/ staff may collect NTR in the form of cross cheque or demand draft or pay order or cash (if permissible) or the depositor presents a deposit slip after having deposited the amount in relevant transitory bank account or directly in public account;(ii) due care shall be taken to fill the required information on TRs/ deposit slips for the sake of correct reporting; (iii) the departmental officer/ staff responsible shall enter the receipt in an electronic register or manual register or ledger as soon as the amount is realized; (iv) the departmental officer/ staff shall reconcile the amount so received/ deposited with relevant accounting office (FTO or AGPR or AGPR sub office or DAO) concerned on quarterly basis. For the reconciliation purpose departmental officer/ staff shall present statement based on Receipt Register or Ledger or a print list in case of maintaining an electronic record’ supported with collection/ deposit voucher or TR or pay in slip; (v) for reconciliation with record maintained by relevant accounting office the dealing officer/ staff shall generate or reported on FBL 3N report from CGA, FMIS, and (SAP ERP) and reconcile the same with departmental officer/ staff. Variation, if any, shall be corrected immediately; (vi) in case of last quarter of the Financial Year the reconciliation shall be done on monthly basis; (vii) the departmental officers/ staff shall forward the reconciled statement to S.O NTR Budget Wing Finance Division by the l5th of first month of following quarter. In case of last quarter of Financial Year’ the reconciliation statement shall be forwarded by 15th of next month. The statement may be forwarded through post/ dispatch rider/ e-mail;(vii) role and responsibility of Finance Division (Section Office NTR budget will be as follows: (a) Finance Division shall receive the reconciled statement and use the same for reporting, reconciliation and monitoring and to prepare NTR summary report. In case a reconciliation report is not received, Finance Division shall issue a reminder to the departmental officer/ staff concerned with to a copy to PAO, for necessary action on the part of department; (b) Finance Division shall maintain the record of voucher/ TR/ pay in slip of single transaction of Rupees one million or higher amount; and (c) the reconciliation statement and FBL3N shall be used for discussion and follow up with respect to NTR meetings.
Copyright Business Recorder, 2022
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