Who Owns Pakistan - Yimg

political heavyweights or their henchmen. It was in response to this hue and cry
that Punjab govt put up advertisements in newspapers in the third week of
March, 1998 asking the people to ring up two telephone numbers in Lahore if
they have complaints of overcharging by octroi contractors.
The contractors and those who award the contracts have a simple way of
cheating, both the govt and the common men. The bids are invited on the basis
of unrealistic low rates with the result that contract is awarded for a nominal
amount. However, once the contract is awarded the contractor is given a free
hand to overcharge and the bulk of the amount charged as octroi and other
municipal taxes end up lining the pockets of the bureaucrats and contractors.
The daily Business Recorder, Karachi has regularly carried complaints by the
business community against overcharging of municipal taxes by the contractors.
According to a report in December 9, 1997 issue, the export of Molasses by the
sugar mills in up country came to a standstill because the octroi contractors in
Sindh were charging several times the due amount. Quoting the exporters of
Molasses by sugar mills , the report said " Rawangi Mahsool (Export Tax)" on
Molasses was fixed at Rs 15 per truck but the contractors were charging at Rs 75
per ton. In addition the exporters had to pay Rs 25 per ton at Karachi and KMC
octroi of Rs 2 per ton. Thus total levies came to Rs 117 per ton which was more
than 10% of the value of exports.
On June 25, 1996 when the Supreme Court restored the Local Bodies in Punjab,
the first official work, some of the restored chairmen performed on rushing to
their offices was cancelling octroi contracts and stop payment on the so-called
development projects. They knew that their chairmanship was not worth a penny
if the contractors awarded by their predecessors were to stay.
The municipal corporations and cantonment boards have up to 30 sources of
income but the major head of income include the following:
1. Octroi consisting of import and export tax
2. Property tax levied at 3-4 percent if the value of transaction
3. Licence fee from vendors and shop keepers
4. Auction of bs-stops and stands for other vehicles
5. Auction of vegetable markets and slaughter houses
6. Water Tax
7. Fee for advertisement boards
8. Fee for approval of constraction maps
The local bodies also raise small revenue from auctions for public latrines,
disposal of trash and sewer water which is used as fertilizer but the income from
sewer water has ceased because farmers have stopped using it as fertilizer
because of plastic bags getting mixed into it.
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