KARACHI: The Sindh government recovered Rs300 million from property tax defaulters during a drive launched by the Excise Department recently.

The campaign is directed towards individuals and institutions owing Rs1 billion in tax dues.

The Excise department has formed three special teams which are contacting non-payers to persuade them to clear their dues of more than Rs50,000 till May 31 to save them from action under harsh punitive laws, including seizure of property.

Sources in the department indicate that the tax defaulters include Karachi Chamber of Commerce and Industry (KCCI), Site Association of Industry, KMC, Pakistan Cricket Control Board and Port Qasim.

The director-general of Excise and Taxation rejected the plea of KCCI that the building has been declared a national heritage and hence it should be exempted from property tax. He maintained that large parts of the building are on rent which yield a handsome income. The KCCI has to pay Rs150m tax dues to the Sindh government.

A huge amount is due against many government buildings, including the KMC. The excise department has also contacted the finance department to make book adjustment of the property tax dues against the buildings owned by the Sindh government to clear the default.

A senior official of the Directorate of Property Tax said that the department is trying its best to avoid harsh action against defaulters, such as seizure of property, but this time the government has decided to use all means to recover huge tax money.

He said that as a result of the drive, some hospitals like Liaquat and Memon hospitals have started paying tax arrears.

Tenants in Port Qasim Industrial Estate have started tax payments while Port Qasim with a large tax amount is still reluctant to pay. The Karachi Port Trust has started payments to clear its tax dues.

The Sindh government has issued a list of institutions and trade bodies which have property tax arrears.

KCCI owes Rs35,34,000, SITE Association Rs250,000, National Stadium Rs9,37,00,000, Saint Law­rence School Rs600,000, Al-Mustafa Hospital Rs1,10,00,000, Sindh Board of Technical Education Rs18,00,000, Saint Jules School Rs51,00,000, Indus Motor Company Rs2,00,00,000 Customs Officers Club Rs3,50,000.

Published in Dawn, May 17th, 2015

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