KARACHI, Jan 1: The introduction of new property tax rates and conferment of vast discretionary powers to the excise and taxation officers have opened a flood-gate of corruption.

It transpired during a survey that the new property tax rates, vetted and approved by the Sindh Cabinet during the first quarter of 2001, have emerged as a major source of nuisance and financial hardship to the people of the province, particularly the Karachiites.

The previous property survey in the province was carried out some 32 years ago and during the period the prices of property and cost of land in Karachi went up sharply.

The Sindh government in view of the fact decided to carry valuation and reassessment of properties in 42 rating areas which took off in October 2000 and completed successfully in the entire province over the period of time after consulting all segments of society including businessmen, traders and public representatives.

During the survey, at least 15 to 20 new units were identified in all rating areas which were not previously assessed while a large number of properties which were not actually on rent but were being recorded as self-occupied have been detected.

In certain categories of properties, like educational institutions, hospitals/clinics, cinemas/entertainment places, sports complexes, petrol pumps and warehouses which were previously assessed at ordinary, commercial rates are being notified separately.

Besides to ensure elimination of corruption, community participation was encouraged to supervise the assessment and transparency in the grant of rebates and concessions.

In the new and enhanced rates system, residential areas of Karachi were divided into four divisions viz A, B, C and D while a uniform tax system was introduced with evaluation of the property in accordance with covered area instead of slapping tax as per accommodation or number of rooms.

However, in the wake of these measures by the government the sufferings and victimisation of citizens at the hands of excise and taxation rose unprecedentedly as to the utter surprise and shock of a majority of citizens they received payable tax from the department manifold compared to the previous years.

Unable to cope with the situation when they rushed to 22 offices of excise and taxation department set up in different parts of the city, they were clearly explained to “fulfil” financial demand of all the concerned personnel of the department if they desired them to reduce the burden of heavy tax imposed on them.

Finding no solace from the emerging scenario, a majority of the people preferred to compromise with the officials making them financially healthy in the process at the cost of the national exchequer.

One of the affectee said he received a tax demand of worth Rs30,000 from the excise department for his house situated on 600 square yards area.

“Previous year, I had paid Rs7,000 and the outstanding difference of Rs23000 was simply unbearable for me. When I rushed to a nearby E&T office, they demanded Rs10,000 to reduce the amount which I had to oblige otherwise I would had to pay the same amount”.

“The government, instead of mitigating plight of its citizens, is bent upon multiplying their woes by not taking to task such elements who are undermining its image,” he added.—PPI