ISLAMABAD, May 22: About 28 government departments and semi-government organizations/ corporations have been declared defaulters of property tax and water charges, sources told Dawn on Wednesday.
The Capital Development Authority (CDA) revenue directorate has served notices to these government departments to pay their outstanding dues amounting to Rs145 million before June 30.
Failing to meet the deadline, the CDA will then take necessary measures to recover the arrears, the sources said.
The CDA has to recover water charges amounting Rs10 million from 16 government departments.
The chief executive secretariat owes Rs0.646 million in water arrears to the CDA, Chief Executive Inspection Commission Rs0.744 million, judges residence Rs0.107 million, Pakistan Institute of Medical Sciences Rs2 million, Federal Lodges Rs0.881 million, Women Hostel Rs0.646 million, Chumry Type Hostel Rs0.451 million, Shaheed-i-Millat Secretariat Rs1.139 million, 21 Family Suites (Gulshan-i-Jinnah) Rs0.098 million, minister’s residences Rs0.289 million, Punjab House Rs1.302 million, Balochistan House Rs0.453 million, Communication Secretariat K-Block Rs0.308 million, Frontier House Rs0.400 million, Pakistan Engineering Council Rs0.111 million and Pak Public Works Department Rs0.282 million.
The source said 12 semi-government departments/corporations have been declared defaulters of property tax amounting Rs135 million.
Islamabad Electric Supply Company (Iesco) is stated to be the biggest defaulter of property tax among those who have been served notices, the source said.
The Iesco has to pay arrears of Rs48.331 million, Pakistan Telecommunication Limited Rs40.119 million, Pakistan Television Headquarter Rs20.875 million, PTV Academy Rs4.119 million, Agriculture Development Bank of Pakistan Rs4.193 million, Pakistan Broadcasting Corporation Rs4.996 million, National Agriculture Research Council Rs2.421 million, Pakistan Agriculture Research Council Rs0.834 million, Sui Northern Gas Pipelines Limited Rs2.363 million, State Bank of Pakistan Rs2.664 million, Printing Press Corporation of Pakistan Rs1.695 million and Utility Store G-9 Markez Rs 0.390 million.
A senior official of revenue directorate confirmed that notices have been sent to these government departments and corporations.
He said most of these departments have not been paying their property tax and water charges to the CDA since 1991 and notices have been served to them in the past, too.
The notice issued to these government departments and corporations said: “The CDA has no intention to take stern measures for the recovery of outstanding dues from government departments and corporations. But in case of non-cooperation, the CDA would be forced to adopt necessary steps such as recovery of dues through recovery squad and additional collector land and revenue, Islamabad under Land & Revenue Act.”
Meanwhile, the CDA’s director revenue Jamilur Rehman said it has made amendment in its property tax collection policy for commercial units.
The official said previously property tax of a commercial building was equally divided among the total number of units, whatever the size. “An owner of a small commercial unit paid the same property tax, which the owner of a big unit in the same commercial plaza was paying,” he elaborated.
Under the new policy approved by the CDA Board, property tax of commercial units will be fixed according to their size and area.
Responding to a query, he said there would be no change in the amount of property tax presently charged by the CDA on each commercial plaza.
The official hoped that the amendment would provide relief to those traders and owners, who had to pay higher taxes for smaller units.
The owner of a commercial unit will have to produce a sale deed, rent agreement or power of attorney of the unit before the official concerned so that the revenue staff could re-asses the property tax.
Giving details of the tax recovered and its annual target, the official said the CDA had so far recovered Rs349 million in property tax against annual target of Rs550 million. Out of which Rs231 million had been collected from residential area and Rs117 million recovered from commercial sector.
Similarly, in collection of water charges, the authority had so far recovered Rs116 million against its annual target of Rs155 million. A sum of Rs80 million had been recovered from residential sector and Rs36 million from commercial units.
The official said the rate of recovery of property tax in Islamabad was better than in Rawalpindi.
Mr Rehman acknowledged that the people of Islamabad were cooperative in terms of paying taxes.