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CBR to launch survey of potential commercial, residential properties

SOHAIL SARFRAZ

ISLAMABAD: The army assisted survey of commercial and residential areas begins in Karachi and Hyderabad from middle of April under a pilot scheme devised by the CBR.

As decided by the CBR highups last month, special survey teams comprising civilian and military officials, would make on-the-spot assessment of potential of Income Tax, Wealth Tax and Sales Tax data during door-to-door and shop-to-shop survey throughout the country.

Official sources on Tuesday told Business Recorder that under a pilot project, CBR has selected four cities of Southern Region including Karachi, Hyderabad, Quetta and Sukkur. Not only tax evaders would be nabbed but the tax base too would be much larger which may lower the tax rates in time to come.

Twenty-five teams comprising CBR officials and army men would conduct a through survey to be completed within a month. If not completed during the month, the survey would be extended by a fortnight, sources added. Ten teams would operate in Karachi and five each for other towns i.e. Hyderabad, Sukkur, and Quetta.

The CBR teams comprise Deputy Assistant, Collector of sales tax; Assessing officer concerned; Auditor sales tax; Deputy Superintendent and Inspector sales tax; two income tax inspectors; Upper Divisional Clerk of sales tax; two Upper Divisional Clerks of income tax; Naib Qasid; Notice Server. Ancillary teams would include army; SHO concerned; ETO concerned; Executive Officer; Executive Engineer; Registrar of Property and Director Land concerned.

The survey, according to sources, is expected to bring in additional Rs. 4,700 million to the national kitty. The pilot project would cover income tax, wealth tax and sales tax.

Official sources told Business Recorder on Tuesday that the detailed execution plan of posh commercial and residential areas of these selected cities has been prepared jointly by Commissioners of Income Tax and Collectors of Sales Tax. It envisages completion of survey operation within one month, which could be extended by 15 days.

Area-wise break up of revenue projections has been set as: Karachi Metropolitan (commercial areas); expected amount of revenue from Clifton is Rs. 850 million; Defence Housing Authority Rs. 300 million; PECHS, Tariq Road and Bahadrabad Rs. 200 million; Gulistan-e-Jauhar and Gulshan-e-Iqbal Rs. 800 million; Saddar, MA Jinnah Road and adjoining areas Rs. 500 million; SITE, Timber Market, Lea Market and adjoining areas Rs. 500 million is expected to earn through select survey.

Karachi Metropolitan (Residential areas); the expected amount of revenue from Clifton and Bath Island is estimated at Rs. 150 million; DHA Rs. 200 million; PECHS and Tariq Road Rs. 100 million; Gulistan-e-Jauhar and Gulshan-e-Iqbal Rs. 150 million.

An estimated amount of Rs. 350 million tax revenue is expected from the commercial and residential areas survey in Hyderabad; Rs. 180 million from Sukkur and Rs. 320 million from Quetta.

Official sources disclosed that after analyzing experience of phase-I remaining commercial and residential areas of Southern Region would be surveyed to meet the balance target of Rs. 4.8 billion. The Commissioners of Income Tax have been directed to keep detailed plan of second phase of the survey in the light of experience gained.

The Regional Commissioners of Income Tax would ensure to initiate second phase of the survey from July 2000 to September 30, 2000.

The Chief Executive of Pakistan has already said that an extra amount of Rs. 600 billion is expected after the documentation of the economy and survey.

In a recently held meeting of Regional Commissioners of Income Tax, the CBR has directed to launch survey of private and commercial properties in 13 major cities of the country.

It was decided that there would be a thorough survey for collecting data required to broaden the net of Income Tax assesses.

The meeting also observed that more than 100,000 persons were expected to disclose the untaxed property and assets and deposit an estimated amount of Rs. 5 billion to the national exchequer.