Token tax: Fine on non-payment to keep increasing

Thousands of lost files found in Excise and Taxation record rooms.

LAHORE:

The deadline for amnesty over the late submission of token tax ended on January 1. The Excise and Taxation Department has announced a nominal fine that will increase after every 15 days. 

The E&T Department has informed all General Post Offices to impose 5 per cent of the motor vehicles tax on vehicles that haven’t paid their token tax for 2013-14. The fine will increase to 10 per cent on January 16, 15 per cent on February 1 and 20 per cent on February 16. Vehicle owners can pay the tax at GPOs or E&T offices.

The E&T director general had issued a notification in December directing officers not to waive the penalty after January 1.



The fine had been waived for tax paid before December 31. On December 20, the E&T set up a window at its office to share the collection load with the GPOs.

Fines are usually imposed three months after the nominal deadline for token tax payment expires. Vehicle owners are asked to pay the tax from July 1 each year and are given three months. A 10 per cent rebate is available if the tax is paid in July.

After three months, 25 per cent fine on the MVT is imposed that can only be waived by motor registration authorities.

Token tax comprises the motor vehicle tax, income tax and professional tax. The MVT for a 1,300CC car would be Rs1,800; the income tax Rs3,000; and professional tax Rs200.  The E&T Department has 11 categories based on a vehicle’s engine capacity.

Lost return files



The E&T Department recently found thousands of return files in its offices that had previously been misplaced. The files were found during a routine cleaning of the record rooms while the workers were moving the stacks to scan return files. The E&T recently announced that it would scan all the 5.2 million return files in its possession.

Region C Director Imran Aslam said the E&T Department had 0.53 million files from Lahore.

The department has decided to return these files to their original owners.

The files would be mailed to the owners after they are scanned.

Director General Naseem Sadiq said these files would be scanned over the next two months. The data would be made available on internet and maintained on a data base.

He said the department was working on introducing a system that would make return files redundant.

Those who do not receive their files can find scanned copies of their documents online or with the Excise Data Base.

Return files are a collection of documents detailing the make, maker, payment details and previous owners of vehicles. Since 2001, the E&T Department scans the return files at the time of registration. Return files have great value and can depreciate the resale amount of a vehicle by 10 to 30 per cent if lost.

400,000 number plates

As many as 400,000 computerised number plates have been lying uncollected with the E&T Department. The plates will be forwarded to the address mentioned in the documents. The DG said they would verify addresses with the police if no one collects the plates.

Published in The Express Tribune, January 4^th, 2014.