Failure to pay the tax within prescribed period with penalty under Section (9) of the Act, the unpaid amount of tax along with penalty is recoverable as arrears of Land Revenue. But, Excise and Taxation Officers (ETOs) did not recover the motor vehicle tax amounting to Rs 63.202 million from various districts.
The report further stated that according to the provision of law contained in section 117 and 118 of Sindh Local Government Ordinance 2001, "each taluka and town shall be rating area within the meaning of Section 3(2) Sindh Urban Immovable Property Tax Act & the Rules, 1958, where it is stated that all the tax shall be charged, levied and collected at 20 percent of the amount of value of lands and buildings".
The Excise and Taxation Officers/Deputy District Officer Karachi in violation of the above provision of law, did not realise the property tax current and arrears of Rs 46.112 million from National Stadium Karachi during 2010-11. The para No: 3.4. "Non-realisation of infrastructure Cess - Rs 31.089 million" mentioned that according to Section-9 of Sindh Finance Act, 1994 as amended by Sindh Finance Act, 1996 and Sindh Finance (second amendment) Ordinance, 2001, "Infrastructure cess is levied and collected at 0.80 percent C&F value of a consignment on the movement of goods entering the province from outside the country through air or sea in cash."
The various ETOs did not recover the Infrastructure Cess amounting Rs 31.089 million in violation of law during 2010-11. According to para "Non-realisation of property tax Rs 23.738 million" Sindh Local Government Ordinance 2001, "each taluka and town shall be rating area within the meaning of Section 3(2) Sindh Urban Immovable Property Tax tCt & the Rules. 1 958, where it is stated that all tax shall be charged, levied and collected at 20 percent of the amount of value of lands and buildings".
Eighteen Excise and Taxation Officers / Deputy District Officers in violation of the above provision of law, did not realise the property tax amounting to Rs 23.738 million during 2009-10 & 2010-11. Similarly, there are many other paras including non-realisation of revenue on import of Gold - Rs 18.202 million, non-realisation of Professional Tax Rs 11.207 million, non-realisation of Hotel tax Rs 3.994 million, non-realisation of Cotton Fee Rs 0.122 million, non-realisation of license fee from motor vehicle dealers Rs 0.093 million, loss to government revenue Rs 19.087 million, estimated Loss of Government Revenue Rs 4 million, late deposit of revenue into government account Rs 232.497 million. The audit report further mentioned that all said matters had been pointed out to the authorities during August, November and December 2011. But no reply was received from the department till finalisation of the report.