April 10, 2008	Thursday	Rabi-us-Sani 3, 1429

KARACHI, April 9: The Sindh Excise and Taxation Department has launched a drive to recover property tax from its major defaulters, including Customs, Karachi Shipyard, Pakistan Cricket Board, and some civic bodies.

PTCL owes Rs90 million, PCB Rs79 million, Karachi Shipyard Rs1.6 million, PTV Rs1.1 million, KWSB Rs4.6 million and Customs Club Rs6.3 million.

Excise and Taxation Director-General Asif Marghoob Siddiqui told Dawn that under Clause 4 of the Sindh Immovable Properties Act only buildings owned by the provincial and federal governments were exempted from property tax providing any amenity service without any charge and not engaged in any commercial activity.

He said that the utility companies were earning millions of rupees on account of providing water, gas and power but were not paying property tax which is a vital constituent of Sindh revenue devolved to the City District Government Karachi under the Sindh Local Government Ordinance.

He observed that the utility companies take no time to discontinue connections of government buildings or private residences in case of non-payment of monthly bills. Similarly, these companies should pay their property tax dues.

The directorate reaffirmed that under the law excise and taxation officers of the department have powers of first class magistrate and were authorised to attach properties of the defaulters and arrest them.

It advised the defaulting companies to present their cases with necessary evidences for exemption from property tax under the rules, which allows concessions to only such organisations engaged in free of charge service as amenity or as charity.

In a letter to the PCB, the directorate-general of excise and taxation reminded that the cricket board had been earning huge revenue by holding national and international events at the National Stadium, but was not clearing its tax dues. The directorate requested the PCB to pay 50 per cent of the dues and also arrange inspection and re-survey of the land under its possession.

Responding to an earlier notice the PCB management said that it was allotted 104 acres of land under a presidential order. However, as a result of some encroachments the land was reduced to only 65 acres.

The board has requested the directorate to assign an expert for demarcation of land under its possession in the form of National Stadium and the parking lots.

Responding to a tax payment notice, the Karachi Water and Sewerage Board management said that it was under the administrative control of Pakistan Rangers and is engaged in public service; hence it was exempted from property tax.