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Revenue Board for penalty on NBP for illegal retention of tax

ISLAMABAD (October 10 2003): The Central Board of Revenue (CBR) has strongly recommended to the State Bank of Pakistan (SBP), Karachi to impose penalty on the National Bank of Pakistan (NBP) for illegal retention of tax collection.

Sources said here on Thursday that CBR, SBP and NBP have mutually hammered out new accounting/reporting mechanism for reconciliation of revenue receipts to check gross variations in the reporting figures from July 1, 2003.

However, NBP branches still retain tax collection illegally and in certain cases submit incomplete pay orders to the collectorates.

CBR has conveyed to the SBP that NBP is committing gross violation of the federal treasury rules and not properly following new revenue reporting system, which requires the NBP branches to submit tax collection receipts within 24 hours and 48 hours respectively.

Sources quoted CBR Director Research and Statistics Umar Wahid telling Director Accounts SBP, Karachi that SBP should immediately intervene into the matter and impose penalty on the defaulting branches of NBP under intimation to the tax authorities.

The CBR has repeatedly taken up the issue of retention of revenue receipts with the SBP, but despite new reporting system, the concerned parties were unable to complete the process in time.

On the complaint of revenue collection authorities Quetta, the CBR has also specified five NBP branches delaying report of revenue receipts.

Meanwhile, Collectorate, Quetta has informed CBR that despite several telephonic/written requests, NBP, Quetta Region and Gwadar Region do not submit credit scrolls and MT in time. As per new accounting system agreed upon by SBP, NBP and CBR, all collection would be remitted within 24 and 48 hours positively. However, NBP branches are not following the treasury rule 582.

Despite this agreement following NBP branches are not furnishing credit Scrolls on weekly basis: Hub Branch, H. Hub Branch, Gadani Branch, Panjgoor Branch and Turbat Branch.

Collectorate maintained all NBP branches located within 150 kms may kindly be directed to furnish Credit Scrolls and MTs thereof on daily basis and collection other than this within 48 hours.

National Bank of Pakistan Zhob Branch's Credit Scrolls do not tally with their Pay Orders, received from NBP City Branch, Quetta, and as such bifurcation to S.B.P. can not be provided.

The Regional Office has been informed earlier but it did not follow the instructions. Gaddani Branch has stopped affixing date of collection on Credit Scrolls, thus calculating date wise collection is impossible.

Gaddani's Credit Scrolls amount is Rs 83,499,047 but no Pay Order has been received so far.

Panjgoor and Turbat Branch furnish Credit Scrolls collection approximately after a month.

Quetta City being the nearest branch needs to furnish Credit Scrolls and MTs on daily basis, but their Scrolls and Pay Orders are also not received daily. For doing the needful, immediate correction is required, collectorate added.

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