Billions lost in property tax

LAHORE – To avoid general public resentment, the Punjab government is collecting an amount in property tax that is hardly one-fifth of what it should have been, sources in the Excise and Taxation Department claimed on Wednesday.

Official logo of Lahore

Official logo of Lahore (Photo credit: Wikipedia)

A senior officer said the E&T Department was collecting about Rs1.4 billion as property tax from Lahore, though this amount could be increased by at least five times if a general survey was conducted to determine the latest property prices. According to the Punjab Urban Immovable Property Tax Act 1958, the rate of property tax should be determined through a survey to be conducted after every five years.

The last such survey was conducted in the City in 2001 and it is being extended after every year. “The rates of property have increased by at least ten times in Lahore since 2001,” an officer of the E&T Department said.

Similarly, the rent of buildings has also increased manifold but taxation rates remain the same as in 2001. The officer further said property tax was fixed as per evaluation of the property and on the basis of rent, but unfortunately no general survey had been conducted in the City for more than a decade.Source: http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/lahore/04-Oct-2012/billions-lost-in-property-tax