The Islamabad Excise and Taxation Department failed to recover Rs11.3 million in traffic fines issued during the financial year 2024-25.
According to the audit report, the challans issued by the department worth Rs11.33 million for traffic violations but only Rs3.31 million has been recovered so far.
The report said that the non-recovery of fines is a serious failing in the department’s monitoring and recovery mechanism, highlighting that the failure deprived the national treasury of legitimate revenue.
Registration of vehicles with outstanding fines has been suspended and notices have been issued to their owners.
The audit recommended linking recovery of traffic fines with vehicle registration, transfer and renewal to ensure timely collection.
The report further stated that the recovery of taxes and penalties is mandatory under the Public Financial Management Act 2019, while fines should be collected under the Punjab Motor Vehicles Ordinance 1965.
The audit report warned that non-recovery of fines also encourages traffic law violations.