ISLAMABAD: The Commerce Ministry has failed in complying with directions of the Auditor General of Pakistan (AGP) regarding recovery of Rs 1.807 million from the National Tariff Commission (NTC) officials.
A ministry source told Customs Today that the ministry was conveyed about the said directions in January 2014, but no development has been made in this regard.
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The source revealed that the NTC deducted Rs 921,150 from the salaries of employees by granting 75% income tax rebate to employees who were not entitled as per Income Tax Ordinance 2001 during the fiscal year 2012-13.
“The audit observed that the management allowed 75% tax rebate to all officers working in NTC rather than extending the rebate only to full-time researchers resulting in the less deduction of income tax amounting to Rs 1.807 million from salaries of the employees,” the source added.
The source observed that AGP was of the view that less deduction of income tax was in violation of provisions of the income tax Ordinance 2001, and deprived the government of its due receipts while NTC management replied that NTC was a research organisation and its employees were entitled to 75% reduction in payable tax under the provision of Clause 2 of Para III of Second Schedule of Income Tax Ordinance 2001, if read with FBR UO issued on May 8, 2012.
However, the source said that AGP did not accept the reply in lieu with said UO and observed that research work carried out by NTC employees and publicised by the NTC was not provided by the management in support of their reply. The AGP wrote to the commerce secretary asking him to recover and deposit the said amount in the national exchequer.
