The district administration has registered 1,252 Kanal prime land in the name of three persons. The societies were registered without collection of over Rs 350 million mandatory capital value tax (CVT). CVT is payable by individuals, firms, and companies which acquire an asset by purchase or a right to use for more than 20 years.
Taxation is important for many aspects of an economy’s growth. Collecting taxes and fees is a fundamental way for countries to generate public revenues that make it possible to finance investments in human capital, infrastructure, and the provision of services for citizens and businesses. Tax evasion results in lower revenue for the government that places greater constraints on government spending on public goods and services, hurting economic growth.
The Federal Investigation Agency (FIA) has initiated an inquiry into the allegations of tax evasion, illegal extension, and commercialization by housing societies. The legal and judicial system should provide the right incentives to prevent tax evasion, and tax agencies and their auditing teams should play a crucial role in identifying and punishing offenders.