ISLAMABAD: The Federal Board of Revenue (FBR) has recovered Rs1.2 billion in taxes from various bank accounts of Evacuee Trust Property Board (ETPB).
According to sources, with the accounts emptied, the institution has plunged into a financial crisis. The accounts department currently has no funds available to pay employee salaries or pensions. In June this year, FBR had also recovered Rs940 million in taxes.
ETPB Chairman Sajid Mehmood Chauhan has termed this action unjust and written a letter of protest to FBR Chairman, the sources said.
The ETPB’s position is that this tax deduction is baseless because the Board is a trust institution and all its assets are government property. Under Article 165-A of the Constitution, government-owned properties are exempt from taxes.
The FBR has granted this exemption to ETPB in the past as well.
The Board does not receive any grant or funding from government. Its income comes solely from rent and lease money.
The Board’s earnings are spent on the maintenance of minority worship places and on welfare activities.
Despite the fact the tax matter is already pending in court and before the tax tribunal, FBR took a unilateral step and withdrew Rs1.20 billion from the Board’s accounts, including pension funds and employees’ funds.
Sources said this action has caused anxiety and unrest among the institution’s employees. The National Employees Union has decided to protest against the move.
Employees have appealed to Prime Minister to take notice of the matter and grant tax exemption to ETPB.
