Federal Board of Revenue (FBR) has imposed Liquidated Damages ranging from Rs65,000 to Rs4,200,000 on EMBA Corporation for delayed delivery of the goods, National Engineering Works, Ahmad Hussain Jagirani, Perk Engineers & Contractors and SKB for delayed completion of the interior development and refurbishment of the contracted activities. FBR has taken the action in the process of implementation of Tax Reforms through financing from the World Bank.
These reforms with the name of Tax Administration Reform Program’ (TARP) were started in January 2005 and financing of this program is completing by December 31, this year. There were different activities initiated under this program including infrastructure up-gradation which included both Information Communication Technology (ICT) and physical infrastructure up-gradation. Under this program, Tax Offices throughout the country were upgraded through interior development and refurbishment.
At 13 locations, Transit Accommodations have been constructed. For this purpose, after completion of the prescribed processes by the World Bank, contracts were awarded to different contractors. In every contract there were given timelines for completion of the activities. In case of intentional default by the contractors Liquidated Damages (LD) are imposed. FBR has advised all its contractors and suppliers to abide by the given timelines, failing which penal provisions, as incorporated in the related contract agreements, will be invoked.