TAXILA, Feb 12: The audit authorities have detected Rs2.45 million CVT (capital value tax) scandal in the revenue department, Taxila.

According to police, some stamp vendors collected the CVT on land transfer in connivance with officials of the department but did not deposit it in the department.

The scam was unearthed by a team of director general, audit (provincial receipts), Lahore in November 2012, but no action has been taken against the perpetrators, as they allegedly enjoyed the support of some people of influence.

When the team scrutinised the account of the department it found that the revenue department had not realised the Capital Value Tax on leases of more than 20 years.

According to report (a copy of which is available with Dawn) the audit authorities observed that “examination of registration record revealed that the misappropriation caused Rs2,045,876 loss to the exchequer.

This not only caused revenue loss but also showed weak supervisory and management role of the Punjab government.

Theoretically, this was the fault of the sub-registrar, the in-charge of the revenue department, but practically it was of the Punjab government since he was its representative here.

His performance is monitored by the provincial govt.

The report further reveals that the Taxila Revenue Department gave a damn to the audit authorities reported loss and its explanation. “Due to omission/negligence of the dealing officials, government has to sustain the loss,” the report said.

Sources in the revenue department said the CVT @ 2 per cent of the recorded price of the immovable property was levied in 2010 through the Finance Act.

The officials concerned kept a blind eye to this wrongdoing allegedly by the staff of the sub-registrar office causing millions of rupees loss to the government.

It has been learnt that when the revenue staff concerned came to know that their wrongdoing is no more a secret they issued letters to the landholders asking them to deposit the CVT within a day otherwise their lad transfer would be cancelled.

This notice sent a wave of unrest among them and rightly so because they had deposited the fee.

Khalid Mihhas, a landholder,  said he was surprised to see the letter because he had deposited Rs38,000 as CVT charges.

Another affected person said that the stamp vendors in collusion with the revenue staff concerned succeeded in getting their land transferred.

Action should be taken against the stamp vendors as well as the revenue staff for fleecing the people, he said.

When contacted, sub-registrar, Taxila, Qutab Awan, confirmed the misappropriation in CVT.

He said that the CVT was a federal subject and its collection was assigned to provinces in 2010.

It was previously imposed on 16 marla and more but then it was reduced to 8 marla.

Replying t a question, he said it was just one case of misappropriation which was overlooked by the sub-registrar office due to lack of knowledge otherwise it kept an eye on all tax collection.

He assured action against those stamp vendors who have collected the money from the customers but not deposited accordingly including suspension of their licence.