RMC faces setbacks in tax collection

The Rawalpindi Municipal Corporation (RMC) has faced a significant setback in recovering income tax from nine contractors, despite the contracts being awarded seven years ago.

In response, new RMC Chief Officer Imran Ali has issued final show-cause notices to the defaulting contractors, warning them of blacklisting.

The contractors, who secured various construction contracts during the fiscal year 2017/18, were obligated to pay income tax to the government through the municipal corporation. However, they have failed to do so, earning them the label of income tax defaulters.

The defaulting contractors include Suleman brothers, Mir Afzal, Sajid Ali, RM Engineering, Akhtar Khattak, Zaheer Sajid, Imtiaz Ahmed Construction Company, Ali Rajgan, and Hamid Din & Sons.

According to Imran Ali, if these contractors fail to pay their due income tax, their firms will be blacklisted for three years under the Land Revenue Act of 1987. This stern action aims to ensure compliance and accountability.

The municipal corporation's inability to recover taxes over seven years raises concerns about the effectiveness of its tax collection mechanisms.

In Pakistan, tax defaulters can face severe penalties, including blacklisting, fines, and even prosecution.