In first case a loss to the tune of Rs 29.298 million was noticed due to non-realization of Property Tax in different districts of the province. The non-realization of the tax was the violation of the Section 16 of Khyber Pakhtunkhwa Urban Immovable Property Tax Act, 1958, which states that any sum due on account of Property Tax, which remains unpaid after due date without sufficient cause to the satisfaction of the collector is required to be recovered as arrears of land revenue.
During the years 2012-13 and 2013-14, Excise and Taxation Offices in different districts did not recover government revenue amounting to Rs 29.298 million on account of Property Tax. The audit held that the loss occurred due to inefficiency and negligence of the department and the matter was reported to the department and Departmental Accounts Committee (DAC) during its meetings which directed the recovery of the amount and get it verified from audit.
However, no progress was reported till the finalization of the Audit Report 2014-15 and the audit recommended fixing responsibility and recovery of the amount under intimation to it. In the second case a loss of Rs 18.307 million was occurred due to non-realization of Property Tax from autonomous bodies. The non-realization of the Property Tax from autonomous bodies was the violation of Section 4 of the Khyber Pakhtunkhwa Urban Immovable Property Tax Act, 1958.
The section states that properties owned by the autonomous bodies like municipal committees/TMAs, Peshawar Development Authority, SNGPL and PESCO are not exempted from Property Tax and in case of default, recovery proceedings are required to be initiated against the defaulters under Section 16 of the Act.
During the years 2012-13 and 2013-14, Excise and Taxation Offices in different districts failed to recover Property Tax amounting to Rs 18.307 million from TMAs of Nowshera, Aman Garh, Akora Khattak, Abbottabad and Municipal Corporation Peshawar, Kohat and Bannu, Peshawar Development Authority, SNGPL and PESCO Division Haripur. It was held that loss occurred due to inefficiency and negligence of the department and the matter was reported to the department while DAC in its meetings directed the recovery of the amount either through departmental efforts or book adjustment through Finance Department. But, till finalization of the audit report no further progress was reported.
The audit directed the recovery from the defaulters and strengthening of internal controls to avoid recurrence of such negligence in future. In third case a loss of Rs 12.767 million was occurred due to non-realization of 15 per cent Provincial Government share of Property Tax from Cantonment Boards. The non-realization was the violation of the Presidential Order No 13 of 1979, which states that fifteen percent share of net proceeds of Property Tax collected by a cantonment board within its limits is payable to the provincial government concerned.
During the years 2012-13 and 2013-14 Excise and Taxation Offices in different district failed to realise 15 per cent Provincial Government share of Property Tax from the Cantonment Boards of Bannu, Nowshera, Peshawar-II, Abbottabad, D.I. Khan and Kohat.
In fourth case, a loss of Rs 4.156 million in the revenue receipts of Khyber Pakhtunkhwa was occurred due to non-realization of Professional Tax in violation of the Amended Finance Acts of 2009 & 2011, which states that Professional Tax is required to be recovered from persons engaged in any profession, trade, calling or employment of different categories.
Similarly, in fifth case, Hotel Tax amounting to Rs 3.087 million was occurred in violation of the Section 4 of the KP Finance Ordinance, 2002 which states of the levy of 5 per cent room rent per lodging unit per day as Hotel Tax on the basis of fifty per cent of the total number of lodging units available in the hotel concerned.
During the years 2012-13 and 2013-14 Excise and Taxation Offices in different districts failed to recover Hotel Tax, which resulted in inflicting a loss of Rs 3.087 million on the revenue receipts of the provincial government. Furthermore, in sixth case a loss of Rs 2.402 million was inflicted on the revenue receipts due to non-realization of Motor Vehicle Tax and penalty on late registration of motor vehicles.
The non-realization was the violation of the Section 3 of the Motor Vehicles Taxation Act, 1958 under which a specified rate of tax is levied on every motor vehicle. Failure to pay the tax within the stipulated period without sufficient cause attracts levy of penalty under Section 9 of the Act ibid.
Furthermore, in terms of Section 23-A of the Motor Vehicles Ordinance. 1965, new vehicles are required to be registered within sixty days of purchase or import as the case may be. Failure to do so attracts penalty at prescribed rates in addition to the registration fee.
During the years 2012-13 and 2013-14 Excise and Taxation Offices in different districts did not recover Motor Vehicle Tax and Penalty on late registration of motor vehicles, which resulted in a loss of Rs 2.402 million to the government. The audit has recommended immediate recovery of the Token Tax from defaulters and strengthening of internal controls to avoid recurrence of such negligence in future.
Copyright Business Recorder, 2017