SUKKUR, Aug 2: Income Tax Department has issued show cause notice to the Taluka Municipal Administration of Sukkur city on account of non-payment of income tax by the contractor, assigned the contract of recovering water tax and in case of failure the TMA will also have to pay the fine.

Taluka Municipal Administration of Sukkur city entrusted the task to M/s Jehangir Akhter Multi-Engineering Company, for recovery of water tax on its behalf and during last three years the company received commission worth Rs2.450 million at 14.5 per cent from TMA of Sukkur city but did not pay any income tax to the Federal Board of Revenue (FBR) due to which FBR issued the show cause notice to the TMO of TMA of Sukkur city.

Sources further said that, after issuance of notice from FBR, the Taluka Municipal Officer of Sukkur city, Allah Dino Chachar, had directed the Taluka Officer (Finance) to submit a report about last three year’s recovery of water tax by the company.

The TMO of Sukkur city has asked the FBR to directly contact the company, in regard to the recovery of water tax collected by the company and income tax to be paid by the company to FBR.

The opposition members of Taluka Council of Sukkur city, Deedar Magsi, Mumtaz Mirani, and Abdul Majeed Malik said that the company had caused financial loss to the TMA of Sukkur city as huge amount on account of commission against recovery of water tax was paid to the company.