IMC accused of losing out on Rs500m in taxes

Corporation failed to conduct auction for board tax collection rights in past five years

ISLAMABAD: The Islamabad Metropolitan Corporation (IMC) failed to hold an auction for collecting taxes on signage and boards put up by shops and other commercial entities, meaning that the corporation lost out on over Rs500 million in revenues over the past five years.

This was claimed on Friday during a meeting of a sub-committee of the Local Government Commission (LGC) — formed under the interior ministry to oversee civic affairs of the federal capital, particularly those of the IMC. The meeting was held in the District Administration office in Sector G-11 and was attended by LGC members Tayyaba Ibrahim, Ali Bukhari and Islamabad Capital Territory Administration (ICTA) Director-General Shafaq Hashmi.

The sub-committee, reviewing records of the Directorate of Municipal Administration (DMA) under the IMC, said that the auction for shop board and signage tax collection rights have not been carried out for the past five years.

The LGC had summoned DMA Director Zafar Iqbal and IMC Recovery Magistrate Saad bin Asad for the inquiry.

Committee member Ibrahim took strong exception towards the DMA director for failing to present complete records of the directorate and questioned the integrity of the officer.

The inquiry revealed that files for tax recoveries made from BTS towers have been stolen from the DMA office while a large number of illegal mobile towers have been installed in and are operating in the federal capital while billions of rupees have allegedly been siphoned by corrupt officials.

Ibrahim further alleged that IMC Mayor Sheikh Anser Aziz did not set up a cattle market in the city last year for Eidul Azha, which cost the federal capital around Rs90 million in lost revenues.

Asad told the committee that the DMA has not received any case for the past 12 months. Previously, he said some cases were sent to the directorate but they contained incorrect names and addresses.

At this, committee member Bukhari asserted that the stolen money will be recovered and legal action will be taken against all those involved. He warned the officers to cooperate with the committee or be ready to face serious consequences for their false statements.

Meanwhile, ICTA DG Hashmi said that they will support institutions and officers to bring an overall improvement in the system.

The interior ministry had set up the nine-member LGC to conduct annual inspections of the local government in the federal capital — particularly the IMC.

Published in The Express Tribune, April 4^th, 2020.