ISLAMABAD: The capital’s civic body has faced its first financial setback due to the ongoing political crisis.

The Capital Development Authority (CDA) had to postpone the auction of commercial and residential plots, which was scheduled to be held on Monday. The new date for the auction has been set for the second week of September.

“The auction has not been cancelled, rather it has been postponed for a few days to facilitate investors since it was difficult to reach the auction venue due to security arrangements,” said CDA Spokesman Asim Khichi.

The auction was planned to be held in the Convention Centre, after which the CDA management considered transferring it to Pak-China Cultural Centre. However, it was later decided to postpone the action altogether.

The civic body claims that security situation has made it difficult for potential buyers to reach the venue

Apart from two farm houses, the auction was also to offer two commercial plots in E-11 and F-11 sectors each, along with 30 residential and six commercial plots in D-12 sector.

Meanwhile, the civic body also ended the third-party contract system to collect advertising tax for signboards on shops and offices. There was opposition from traders and the business community against sub-letting the contract to collect the advertisement board tax fee.

Islamabad Chamber of Commerce and Industry Senior Vice President Khalid Chaudhry, who is also the central information secretary of Traders Actions Committee Islamabad, lauded the move to abolish the contract.

“CDA has not renewed contract system for collection of this tax through the contractors. Now if any contractor’s representative approaches the shops for board tax collection, traders should not pay him any tax, rather they should inform their trade association about any such demand,” said Mr Chaudhry, while addressing traders at Aabpara Market on Monday.

He said the CDA had agreed to collect advertisement board tax at Rs60 per square yard.

Published in Dawn, August 26th, 2014