RCB counting on tax revenue to pay contractors’ dues

Poor collection, administrative costs behind financial woes

RAWALPINDI:

The Rawalpindi Cantonment Board (RCB) has divided its tax branch into five wards in an effort to improve tax recovery and combat the revenue shortfall that seen the department not paying its contractors, with arrears in tens of millions of rupees.

It has also made slight increases to the contract of properties, such as the cattle market and car parking spaces, as it grapples with financial challenges due to rising non-developmental expenditure and relatively low revenue.

The board’s budget for the current fiscal year is Rs4 billion, of which 60 per cent is spent on non-developmental expenditures. The situation has resulted in stalled and delayed payments to contractors, including those who have completed the development schemes as well as maintenance & repair work.

It has led to disinterest on part of contractors to bid for new development projects. They say that pending payments have impacted their cash flows, making it difficult for them to acquire material for new projects.

To address this situation, the RCB has added to its revenue streams and started payment to contractors.

One change is the division of the tax branch into five wards. Two superintendents, Rana Saleem and Ayub Tabassum, have been tasked with increasing revenue recovery, including property taxes. They have also been tasked with identify properties that are not included in the tax net and bring them into it.

Meanwhile, the contract of the cattle market at Bhatta Chowk was awarded for Rs89.5 million. Last year, the contract was awarded for Rs80.6 million. This means an additional revenue of Rs 8.9 million although it has not been adjusted for inflation.

The Cantonment Board awarded the contract for the parking area in Potorhar are that connects Hyder Road and Bank Road for Rs30.1 million. It was awarded for Rs12 million last year.

 

Published in The Express Tribune, May 31^st, 2023.