Non-realization of taxes deprives KP of Rs 103.94 million revenue

The Auditor General of Pakistan (AGP) has unearthed a loss of Rs 103.94 million of revenue to Khyber Pakhtunkhwa government due to nine cases of non-realization of Property Tax, Hotel Tax, Professional Tax, Motor Vehicle Tax, Motor Vehicle Registration Fee & Penalty and Tobacco Development Cess during financial year 2011-12.
The Audit Report of the revenue receipts of government of Khyber Pakhtunkhwa for the year was conducted in the year 2012-13 has already been presented in the provincial assembly, which had referred it to the Public Accounts Committee (PAC) of the house. In first case of the non-realization of property tax by the Excise & Taxation Department, the provincial government was inflicted with a loss of Rs 49.21 million. The loss was inflicted in violation of the Section 16 of the Khyber Pakhtunkhwa Urban Immovable Property Tax Act, 1958.
During the audit of the Excise & Taxation Office, for the year 2010-11 and 2011-12, it was revealed that government revenue amounting to Rs 49.81 million was not realised, resulting into government loss, which was due to non-realization of government revenue and non-adherence to prescribed rules and procedure.
In second case a loss of Rs 22.11 million was inflicted on the provincial government due to non-realization of Property Tax from autonomous bodies. According to Section 4 of the Khyber Pakhtunkhwa Urban Immovable Property Tax Act, 1958, land and properties owned by autonomous bodies like municipal committees/TMAs, Peshawar Development Authority, Pakistan Tobacco Board and PESCO are not exempted from Property Tax. In case of default, recovery proceedings are required to be initiated against the defaulters under Section 16 of the Act.
In another case, the non-realization of 15% provincial government share of Property Tax from Cantonment Boards deprived the provincial government of Rs 19.07 million. During the audit of the Excise & Taxation Offices, for the years 2010-11 and 2011-12, it was revealed that department failed to realise 15% share of provincial government from cantonment boards, resulting into loss of Rs 19.07 million.