Lahore: The Excise & Taxation (E&T) Department has formulated property tax collection rules for buildings situated along the provincial highways and motorways, a news source reported. The department recently announced its decision to impose property tax on more than 700,000 buildings situated on both sides of the 40,000-kilometre-long highways and motorways in Punjab.
As per the new arrangements communicated, the department has withdrawn its tax exemption previously announced for the properties owned by the Punjab Local Government (LG) Department; 5-marla buildings; land of welfare institutes (including buildings constructed on them), as well as properties owned by retired government employees.
Meanwhile, it has announced property tax exemption for properties owned by the federal and/or provincial governments. Similarly, highways have been exempted from property tax payments. And under the new rules, tax will be collected from the buildings situated along the highways and motorways.
Punjab Excise Minister Hafiz Mumtaz Ahmed and Secretary Wajeehullah Kundi explained that the tax rate on these properties would be determined according to the price of the land. Both senior officials clarified that the tax rates in urban areas were calculated as per the rental value of the properties. They added that the offices and employees of the department should be aware of this difference.
They said that the value of the properties situated along the provincial road network had increased over time because the government had invested billions of rupees on the construction/upgradation of the highways and the motorways. They added that government planned to utilise the revenue for initiating public welfare projects in the province.
Meanwhile, the E&T Department has decided to utilise modern technology instruments in a bid to determine the covered areas of the houses and buildings situated along the highways. With this measure, the department expects to prevent a visit by an excise inspector, which is often unwelcomed.
For this purpose, the excise department would collaborate with the Punjab Urban Unit. It has requested the unit and the Punjab Highways Department to provide the data of the existing roads and buildings.
For measuring the land of the buildings and covered area, the excise department would use 3D photography, drone cameras, and laser measurement.
The excise department has formulated the rules and assessment for collected the property taxes as part of Punjab’s financial budget 2019-20. The Deputy Commissioner (DC) would fix the tax rates to be imposed on the properties located along both side of the highways and motorways.
The DC would categorise the highway property taxes according to financial volumes. Therefore, these taxes would not burden the small traders and shopkeepers. But, the DC rates would be uniform in each category.
In a recent development, the Sindh government had also sought the assistance of the Punjab Urban Unit for the digitalisation and GPS survey for property tax purposes. The provincial government would soon launch a pilot project in this regard in specific areas of Karachi.
