Daily Times

ISLAMABAD: Federal Board of Revenue (FBR) has deducted around Rs 680 million from the accounts of Capital Development Authority (CDA) in the name of property tax, despite a stay order issued by the court.

The FBR has also allegedly blocked four other accounts of the civic agency, virtually rendering it without cash to pay salaries of its employees for the month of April.

According to sources in the CDA, the FBR has started deducting taxes from state-run institutions and departments to meet its annual target and the CDA has come under the scanner.

Well-placed sources told Daily Times that currently the CDA has Rs 400 million in its bank accounts after FBR froze its Rs 780 million in its four accounts.

On the other hand, CDA has made it clear on CDA that Rs 5 billion provided by federal government to this civic agency for making signal-free corridor and construction of roads was loan and not a grant and CDA would return it with interest.

The CDA sources claimed that while the civic agency has managed to collect 20 percent of tax under the head of property tax while the FBR has deducted 100 percent tax from the civic agency’s account.

The CDA sources said that the civic agency is in the process of negotiation with the FBR to deduct the sum in installment so that it could pay salaries of its employees and meet other expenses. According to the sources, the federal government had released Rs 5 billion to the CDA for completion of signal-free corridor project and other development works and the civic agency has utilised around Rs 4.5 billion from the allocated sum.

CDA sources further told Daily Times that FBR has not only overstepped court’s orders but has also recovered tax excessively because CDA has obtained only 20 percent of the total amount against taxes while the FBR has deducted full tax. The CDA sources also claimed that the FBR wanted their participation on the occasion of auction of CDA plots in the future to ascertain the actual income of the civic agency while the CDA officials are opposing the move, fearing interference in its jurisdiction.

According to documents available with Daily Times, the CDA collects far less tax from different departments using banners, billboards and hoardings on flyovers, bridges and buildings in the federal capital.

Last year, Federal Investigation Agency (FIA) through a letter had informed the CDA that corrupt mafia within the civic agency were not charging from advertisers using intersections, roads and bridges, causing a loss of Rs 7 billion to the CDA.

Earlier, the CDA Finance Department had worked out summary to purchase three ambulances to transport bodies but the plan could not see the light as the civic agency failed to manage funds. On an average, nine deaths are reported in the federal capital while the CDA has only three vehicles and interestingly two of the vehicles remain out of order most of the time.

CDA Labour Union has said that the FBR has ambushed over the rights of employees by recovering tax stealthily from accounts and the employees will voice strong protest over this unjust step besides filing contempt of court plea in the court against FBR.