LAHORE - Punjab government is planning to double the property tax by January 2014 and people who have deposited their tax as per old ratio will have to pay arrears after January 1, 2014, sources in Excise and Taxation (E&T) Punjab told The Nation.
They said that 50 per cent work on property survey in this regard has been completed.
A senior officer of E&T said that property survey which is also called reassessment operation 2013 was started in July 2013 and it is supposed to be completed by September 30th.
He said that it is survey which will be completed by the E&T staff by visiting door to door in a campaign. He said that with the implementation of new survey Punjab government will collect 100 per cent more revenue. An E&T officer said that Excise Department was going to receive above said tax amount very tactfully.
Earlier E&T used to receive 25 per cent of rental value as domestic property tax after giving rebate of 10 per cent to citizens.
Now when E&T has given relief to the citizens and decided to receive 10 per cent of the Rental value instead of 25 per cent.
But on the other side E&T has increased its assessment value of the property by four times, for instance if E&T was receiving Rs 5 per square feet and now it will receive Rs 20 in the same head.
Similarly, reassessing value of commercial properties will increase it by 100 per cent, if it was Rs 12 per square feet now it would be Rs 24 per square feet.
E&T was collecting property tax by Rs 3.5 billion to Rs 4 billion which after implementation of the property survey will increase by Rs 6 to Rs 7 billion.
Property tax target of the Punjab was Rs 7 billion earlier while after survey implementation it would be Rs 14 billion to Rs 15 billion.
In E&T Directors conference, the Directors have submitted their reports of their two months fiscal year report wherein they were confident to achieve their tax targets.
Director Region A and B, Akram Ashraf Gondal was of the view that the property survey was scheduled to be completed by September 30 th.
He said that E&T would go to Lahore High Court against the citizens who had obtained stay orders from the court and stay would be got vacated to boost up the revenue.