Lahore: The Excise and Taxation Department has announced its decision to introduce relevant amendments in the Urban Immovable Property Tax Act 1958 — in order to allow the authorities to seal the properties of defaulters when required, a news source reported. In addition, other changes will also be made to the rules enacted under the act, where needed.
Read: Excise and taxation department to seal properties of tax defaulters
Previously the excise officials had permission to seal the properties of defaulters of property tax; however, the Lahore High Court had declared the act of sealing as an ultra-vires act. This was because the Urban Immovable Property Tax Act only mentioned attachments, and did not allow for properties to be sealed.
Read: Excise finalises preparation for crackdown against property tax defaulters
This meant that the excise department could attach properties of property defaulters, but could not seal them as a form of punishment. Additionally, the attachment only meant that such property could not be sold without an NOC by the excise department.
Read: E&T prepared to attach properties of tax evaders
The excise department had previously prepared a draft of the amendments, but the cabinet had expressed its reservations on the matter. This is way the department made a decision re-draft the proposed amendments based on those reservations.