The Department of Excise & Taxation, Punjab has decided to deal with the flaws in the tax collection system once and for all. In this regard, it is seeking property tax declarations from residents in the region, according to a news source.
The system is going to be revamped through a new reform, which is waiting for a final go ahead from the government. Once implemented, it would require tax filers to share accurate details of the property they own. The motive behind introducing this new reform is to bring more transparency to the existing tax collection mechanism.
Once the law passes, people in Punjab will be bound to provide written details of their property to the Excise and Taxation Department. If someone shares fake or incomplete details, he will be penalised with heavy fines.
To put things into perspective, people who share incorrect information will be fined as per a comprehensive set of terms that have been defined by the department. For example, if someone submits faulty details about their property they will be liable to pay not only the tax that they were originally supposed to pay, but also an additional amount as fine i.e. 50% of the original amount due. If this fine is not cleared with six months, the person will become liable to pay 100% of the original tax as fine.
The news report, which appears to be a press release, has also revealed that the upcoming budget for Punjab has no new tax impositions from the Excise & Taxation Department. Furthermore, the news report also reads that the exemptions given on property tax last year will be cut by 10% in the upcoming budget.
In addition to this, the report also says that the Excise & Taxation Department is looking to incorporate new reforms into the existing property taxes collection mechanism. Among these reforms, the compulsion on property owners to provide property tax declarations on an annual or bi-annual basis is the most prominent reform.
The step is reportedly being taken because of the rising number of instances where fake information has been shared by taxpayers about their property, so that they can avoid paying due taxes. The declaration form aims to ensure that taxpayers either share accurate information about their property or bear the consequences.
In the context of how the property market responded to the new tax collection regime that kicked in last year, many people are expecting big problems. However, this year’s budget will most likely not be as scary as the one we found last year. It does appear that the departments concerned are serious about collecting taxes – even if it means amending the laws, or introducing reforms.
Pakistan has a serious issue with taxation, with people coming up with new and improved approaches to evading them. With every passing year, methods to curb these detrimental practices are being introduced and improved – but we still have a long way to go.
If you have a comment about this piece throw it my way in the comments section below.
Samra,
Thank you for your effort but this article is missing a lot of relevant information.
1. “it is seeking property tax declarations from residents in the region, according to a news source.”
Are we talking about entire Punjab or only metropolitan cities ?
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2. “Once implemented, it would require tax filers to share accurate details”
Are we talking about only tax-filers ? What about tax non-filers ?
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3. What taxes are we talking about ?
I am under the impression that -> according to new tax amnesty scheme. Both buyers and seller pay a fix percentage of tax on property transactions and later they do not have to report any property details and neither will they be scrutinized about the source of fund etc because they have paid additional taxes under tax amnesty scheme.
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4. “with people coming up with new and improved approaches to evading them.”
My advise: How about I request you to write a 10 15 page document simplyfing property taxes and what is permitted by law allows to a common person.
This is because, someone I know many people who want to pay taxes but because they either have no idea of the law or find it too complex to be part of the legal / ethical system.
So your detailed analysis on property-tax law in PK will be a great help.
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6. Your article is very generic and gives the same amount of information as in “nawa-i-waqt” or “jhang” newspaper. So it would be my humble advice to educate people on what one should do in different situations.
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7. I just feel a bit low that you have written such a loooong article with too common information. Lets up-our-game a bit and drill down to bits and piece i.e. dissect into it more.
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8. I read every article of every person on this web and hardly reply but the lack of “Real” juicy / relevant content made me spend time for the feedback.
Take care. Hope it helps.
Hello Zeeshi
It feels great to read your comment as you have brought up the right kind if questions. Let’s address them one by one:
1- Punjab, throughout the province
2- That implies to both tax filers and non-filers, I think. This questions needs further investigation. Let me look into it.
3- That amnesty scheme is one time, once you white your money, you start paying the regular taxes on your property. Turning your money (invested in property) white through the amnesty scheme doesn’t mean you won’t pay property tax again.
4- Click on the following link to have a look at the tax-related articles I have done in the past:
https://www.zameen.com/blog/taxation
5- Your point noted down.
6- Let’s wait for further details because the information shared in this article is still a suggestion.
7- I guess I have you to thank you for leaving your feedback.
Its a good Website for Property Information.
Regards-
Zeeshan Riaz
I am regularly paying my property tax since last many years with no arrears what so ever, including the tax for the year 2016-17. All of a sudden I have received a fresh tax challan of a heavy amount asking me to pay this amount till 30th April 2017. on enquiring the excise and taxation department (Punjab) regarding justification of the fresh tax demand, they informed that, “as some unit of your property had fallen vacant and it was assessed as vacant in year 2014-15, therefore the permissible remission granted by the government has been withdrawn ‘on your whole property’ vide a notification on behalf of the governor of Punjab, issued on 1-7-2016, making it effective from 1-8-2014”.
This is absolutely an unjustified cruel action. Please guide me on the issue and if some other member is also encountered with this situation may please share his views and also please suggest the remedial action.
Thank you very much.
I m regularly paying my property tax since last many years with no arrears what so ever, including the tax for the year 2016-17. All of a sudden I have received a fresh tax challan of a heavy amount asking me to pay this amount till 30th April 2017. on enquiring the excise and taxation department (Punjab) regarding justification of the fresh tax demand, they informed that, “as some unit of your property had fallen vacant and it was assessed as vacant in year 2014-15, therefore the permissible remission granted by the government has been withdrawn ‘on your whole property’ vide a notification on behalf of the governor of Punjab, issued on 1-7-2016, making it effective from 1-8-2014”.
This is absolutely an unjustified cruel action. Please guide me on the issue and if some other member is also encountered with this situation may please share his views and also please suggest the remedial action.
Thank you very much..
I have rent out 10 marla house in wapda town lahore starting from November 10,2016 please tell me the amount of property tax on it for current year.