RCB protests PERA's 'interference'

Cattle market contractor's Rs165m income tax cheque bounces

RAWALPINDI:

The Rawalpindi Cantonment Board (RCB) has written a letter to the Rawalpindi deputy commissioner, terming the operations conducted by the Punjab Enforcement Regulatory Authority (PERA) related to encroachments, food, and health within cantonment limits as interference in cantonment affairs.

In the letter, Executive Officer Ali Irfan Rizvi expressed serious concerns over PERA and the Health Department's uncoordinated operations against dengue and encroachments, stating that such actions are being carried out without prior intimation.

He said these operations amount to interference in the legal jurisdiction of the cantonment board.

The letter asserted that the removal of signboards and banners falls solely under the authority of the cantonment board. Actions by PERA and other departments without permission are damaging inter-institutional coordination.

According to the letter, operations by PERA within cantonment boundaries are deemed illegal and promote institutional conflict rather than serving the public interest.

It further stated that dengue control activities were also initiated without any coordination with the Cantonment Board.

Cheque bounced

Separately, a cheque worth Rs165 million issued by the contractor of the Bhatta Ground cattle market to the federal government in lieu of income tax has bounced, prompting the RCB to refer the case to the Cantonment Magistrate for recovery.

According to sources, the RCB had awarded the cattle market contract for Eidul Azha 2025 to Muin & Co for Rs1.657 billion through open auction. The contractor paid the full contract amount to the board before Eid. However, under the contract, the contractor was also required to pay Rs165 million in income tax directly to the federal government.

The contractor issued a cheque for the said amount to the Federal Board of Revenue's Income Tax Department, but it bounced upon deposit.

As a result, the RCB has now referred the recovery case to the cantonment magistrate, who has issued a notice to the contractor and initiated proceedings.

Under the cantonment board laws, any contractor found in default can be blacklisted.

Service tax

On the other hand, the Punjab Revenue Authority (PRA) has demanded a five per cent service tax on parking contracts awarded by the Rawalpindi Municipal Corporation (RMC), which has in turn issued notices to contractors instructing them to pay the tax or face action.

According to sources, the municipal corporation recently awarded an 11-month car parking contract for the Commercial Market for Rs8.3 million, which is expected to be revised to Rs15 million.

In line with this, parking fees will also be increased.

Another contract for parking on College Road, Imperial Market, Liaquat Road, and outside the Municipal Office was awarded for Rs11.3 million. However, due to heavy traffic at Fawara Chowk, the Imperial Market parking site will be excluded from the contract, and the remaining contract will be revised.

Car parking fees will be increased from Rs30 to Rs50, while motorcycle parking fees will rise from Rs10 to Rs20.

The PRA has now issued a letter instructing the Municipal Corporation to deduct a 5 per cent service tax from the awarded contract amounts and deposit it with the authority.