Tax evasion: CBA serves notices to over 1,000 residents

ABBOTABAD:

Cantonment Board Abbottabad (CBA) on Tuesday issued notices to over 1,000 residents of different areas within the board’s jurisdiction for illegally using residential blocks for commercial purposes.

The landowners could face seizure of property if the fail to abide by the regulations laid out in the Cantonment Board Act, official sources said. Residents of posh areas of Habibullah Colony, Jinnahabad, Bilal Town, Iqbal Road, among other areas, have converted residential buildings into commercial complexes by renting them out to shops, schools, colleges, hospitals, hostels, guest houses, beauty parlours and non-governmental organisations (NGO).

They collect hefty sums in rent and evade taxes that are meant to be paid under commercial holding regulations. “They are not only evading taxes but also causing traffic congestion in residential areas,” claimed a CBA official while speaking to The Express Tribune.

When approached for comments, CBA CEO Malik Umar Farooq confirmed that about 1,000 residents are violating the building code, adding that they were served notices following proper enquiry under Section 14 of the Rent Restriction Act 1963. “We have asked them to clarify their position and will seal their property under Section 256 if they fail to do so,” said Farooq.

While answering a question, Farooq said that educational institutions will be allowed to operate only after they obtain NOCs from the neighbourhood. “All other kinds of commercial activity is impermissible,” he added.

Published in The Express Tribune, November 26^th, 2014.