Rs393 million property tax scam uncovered, officials face disciplinary action

An Rs393-million scam involving the misappropriation of Transfer of Tax on Immovable Property (TTIP) fees during the registration of sale deeds has been uncovered by the district administration.

The scam came to light following an inquiry by the Director of Local Government Faisalabad into records of sale deeds registered between July 1, 2022, and June 15, 2023. The investigation revealed that TTIP fees were not recovered or deposited as required, causing substantial financial losses to the Municipal Corporation.

Officials from the Municipal Corporation have been accused of gross negligence and misconduct, with recommendations for disciplinary action under the Punjab Employees Efficiency and Disciplinary Act 2006.

Commissioner Silwat Saeed, in a letter to the Secretary of Local Government and Community Development Punjab, has called for action against former Municipal Officer (Finance) Mujeeb-u-Zaman Shami and ex-Chief Officer Zubair Watto. She has also proposed a committee comprising auditors from the Local Fund Audit, the Board of Revenue, and the Auditor General of Pakistan's office to audit TTIP fees, stamp duties, registration fees, and related taxes for the past five years.

As a result, several staff members have been suspended, including Sarfraz Ahmad Razi (Tax Superintendent), Muhammad Arshad Malik (Retired Head Clerk), Shahid Ali (Junior Clerk), Muhammad Zahid Nasir (Junior Clerk), Ghulam Yasin (Senior Clerk), Aslam Shahid (Junior Clerk), Amir Farooq (Junior Clerk), and Naseem Toor (Junior Clerk). Disciplinary proceedings have been initiated against them.

Commissioner Saeed has instructed all deputy commissioners and revenue officers in Faisalabad Division, including Toba Tek Singh, Jhang, and Chiniot, to ensure timely collection of taxes and fees under the Local Government Act. 

She warned of strict action against any officials failing to comply and emphasized ongoing efforts to enhance transparency and accountability in tax collection processes.