Lahore: The provincial government has decided to take strict action against property tax evaders in Punjab, according to a news report. Accounts and properties of the tax evaders will be sealed in the province.
For the purpose, the government has decided to amend the Urban Immovable Property Tax Act 1958. Section 16 of the act will be amended. Under the section, Excise and Taxation department will be given powers to seal accounts and properties.
Under the current law, the department has no other recourse for recovery except attachment of property. This poses difficulties in the recovery of taxes.
In past, the Excise and Taxation departments sealed the properties for recovery of taxes. However, under a relatively recent writ petition on the matter, the Lahore High Court had ruled against it. The court had ruled that attachment only gives the right to receive rent on the property for the recovery of taxes. Now the law needs to be changed to specifically allow the authorities to seal properties.
The tax authorities have been facing difficulties in meeting the recovery targets for property tax ever since. These measures aim to facilitate the process.
Suggestions have also been made to include the power to seal bank accounts along with the properties. The amendment will need to be approved by the Punjab Assembly after the CM Punjab has given his approval.
