Love, don’t cheat

A number of restaurants and private clubs, in a bid to evade tax, have planned to hold Valentine’s Day parties without securing a No Objection Certificate from the Punjab Excise and Taxation Department, Pakistan Today has learnt. In a smart move, restaurants and private clubs have been attracting people through online invitations without mentioning the location and entry fee of the event. The entry tickets are being sold covertly so that entertainment levy and other objections are not raised against the events by the departments concerned. Saad Rehman, an organiser of private parties told Pakistan Today that he was arranging a party for those who wanted to celebrate the Valentine’s Day.
His promo read, Meanwhile the excise department has also geared up to put a clamp on all such parties involving musical shows, dance functions and other entertainment events if an NOC has not been obtained for them. Though Pearl Continental, Royal Palm and Golf Club and Park Plaza have received NOCs to avoid unpleasant situation during festivities of Valentine’s Day, but around 40 hotels, rest houses and private premises are in no mood to obtain the NOC.
Raids have been planned in posh areas including Gulberg, Faisal Town, Garden Town, Shadman Model Town and Johar Town. However, the department will not swoop down the localities of DHA and Cantonments as they do not fall under the control of Punjab government, an Excise and Taxation Officer (ETO) said.
The Excise and Taxation Department will take action under Entertainment Act 158, section 10. Under the entrainment tax, an organiser who holds a party on either a public or private platform is liable to pay security which varies from Rs 20,000 to Rs 0.15 million depending on the size of the event.
The ETO said the department had imposed 65 percent on the total rate of admission at Valentine’s functions where entry tickets were charged. However, where tickets were not imposed, no entrainment tax was levied and the security money deposited with the department would be refunded later, he said. Another official said the levy was not only for the Valentine’s Day and if anyone were to organise a musical and or a dance party at any time in the year, they were required to get an NOC and pay the tax and the security money. On a question, he said if any Valentine’s party showcased vulgar show or participants were found engaged in any objectionable activity, the departments concerned would take an action against the organisers and the participants.