LAHORE, March 1: The Water and Power Development Authority (Wapda) continued collecting taxes on behalf of the government to the much annoyance of people, and its collection hit a healthy figure of around Rs40 billion last year.

According to the authority’s financial record during 2005-06, its billing figure was around Rs240 billion and it collected over Rs40 billion taxes, inflating its bills by 16.66 per cent. As per details, it collected Rs31 billion as general sales tax (GST), Rs7 billion withholding tax and Rs2.76 billion as television license fee.

With the recent 10 per cent increase in tariff, the collection will go up further next year to the much annoyance of people, who are already reeling under the burden of heaviest electricity charges in the world.

“Using a public utility for tax collection is unfair,” says Waris Alvi of Gulberg.

It seems the government is running on indirect taxation, be it from petrol or power, he says.

Of late, the National Electric Power Regulatory Authority (Nepra) has allowed an increase of 10 per cent. This is insensitivity at its worst, he laments.

Wapda charges 10 per cent as late payment surcharge from people, which has no legal or moral basis, says Nawaz Khan - a chartered accountant from the city. The authority should be concerned with cost of energy only, he says.

Interestingly, the authority charges late payment surcharge on gross amount of the bill that include all taxes also. This is double taxation, which has absolutely no legal justification. Wapda has been doing so for the last many years, and is not ready to share information where this money goes. The Nepra has also not taken note of this violation in its successive tariff determinations, he points out.

Wapda has over 165 million consumers’ base, which also includes the poorest segment of society, who might not have a television set, says Muhammad Sharif of Samanabad. But, it charges Rs25 per month to everyone. It is taxation without any basis. One can’t be charged for something which one does not own, he says.

“The authority is on record opposing its role as a tax collector,” says a Wapda official.

The previous chairman, Lt-Gen (retd) Zulfiqar Ali Khan, had taken up the issue at Islamabad, but with no results, he says, adding that the government is looking for easy ways to make money and formal sectors provide the easiest option.