For implementation of Excise Duty on Minerals (Labour Welfare) Act, 1967 and rules made thereunder, the Province of Punjab is operationally divided into three regions i.e. Sargodha, Rawalpindi and Multan Region. The Assistant Mines Labour Welfare Commissioners are the regional heads who manage to collect Excise Duty on all minerals (specified in the schedule) dispatched from mines and quarries through auction and self-assessment systems. The Assistant Mines Labour Welfare Commissioners also inspect the record of mining firms under the following labour enactments:
- Excise Duty on Minerals (Labour Welfare) Act, 1967
- Excise Duty on Minerals (Labour Welfare) (Punjab) Rules, 1971
- Payment of Wages Act, 1936
- Payment of Wages (Mines) Rules, 1950
- The West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968
Before the year 1998-99, excise duty on notified minerals was directly collected through self-assessment system which was associated with certain shortcomings like leakage of revenue, miss-evaluation etc. Therefore, the auction system of excise duty collection was introduced to avoid pilferage of revenue which has been proved fruitful and brought the Mines Labour welfare Organization from deficit to surplus.
The auction committees are constituted in pursuance of Rule 36-A of the Excise Duty on Minerals (Labour Welfare) (Punjab) Rules, 1971 for all the mining districts in Punjab consisting of five members including a chairman. Accordingly, Assistant Mines Labour Welfare Commissioners manage to conduct the auctions as Secretary of Auction Committee in their respective jurisdiction in sixteen (16) districts or zones.
The Excise Duty on notified minerals from quarries of cement factories, salt mines owned by public corporations i.e. Pakistan Mineral Development Corporation (PMDC) and Punjab Mineral Development Corporation (PUNJMIN) and all districts for un-auctioned period (if any) is directly collected on self-assessment basis.