LAHORE: In a proactive move to convince a maximum number of vehicle owners, especially defaulters, to pay token tax and registration fee, the Punjab Excise and Taxation (E&T) Department has written letters to the heads of all public and private sector educational institutions, asking them to pay taxes for the vehicles owned by their institutions, besides asking the staffers and visitors to do the same.

The step was initiated in the light of a detailed study conducted by a department team led by Director (Motor), Lahore, Mohammad Asif, which revealed that a majority of the vehicles belonging to the educational institutes, faculty members and other staff were plying on the roads without paying taxes.

“During a recent study conducted by the excise and taxation department, it is observed that a large number of vehicles owned by the faculty members/students are either unregistered or in non-compliance of the payment of tax,” reads the letter.

He stated that the motor vehicles tax is an important levy of the E&T department and fetches considerable revenue to the exchequer.

Schoolchildren also being included in the campaign

The tax is levies under the provisions of the Motor Vehicle Ordinance, 1965 and Motor Vehicle Tax Act, 1958, the letter mentioned.

“Since the current financial year 2023-24 is nearing its end, an intensive campaign has been launched against the unregistered and tax defaulter vehicles,” it reads.

Mr Asif warned that department teams have been deployed in various parts of the provincial capital to take action against the defaulting vehicles.

“The teams have been deployed to conduct road checking against the violators,” the letter says.

It suggests to the vice chancellors, principals and other heads to issue directions to their parking and security staff to sensitize the faculty members, students, visitors etc, to get their vehicles registered and pay token tax to avoid any inconvenience.

Mr Asif also wants the educational institutes to display the excise and taxation department’s instructions on their notice boards to create awareness among the staff members and others about the issue.

Meanwhile, he says the department has also initiated a move, asking the schoolchildren to press and educate their parents and other elders regarding the issue, and convince them to pay vehicles’ token tax.

For this purpose, the department has got printed over 100,000 ‘free stickers’ carrying cartoons to develop interest of schoolchildren in the awareness drive. These stickers will be given to the students to display them on the vehicles providing them pick and drop service, Mr Asif says, adding the purpose of launching multiple campaigns is to reach to a maximum number of the vehicle owners and tax defaulters in Lahore.

Last week, the E&T authorities had issued a letter to the presidents of 26 banks, showing displeasure over non-payment of token tax of 18,750 ‘leased out vehicles’, and warned them of strict legal action if the payment was further delayed.

In the letter, Lahore E&T director (motor) had said that most defaulting vehicles, 5,022, belonged to the Habib Bank, followed by 2,523 owned by the Bank of Punjab and 2,211 of the Bank Alfalah.

Published in Dawn, May 2nd, 2024