LGs share in property tax increased by 10pc to 95pc
The Punjab government has decided to increase share of the local governments from the property tax (PT by 10 percent to 95 percent from 85 percent for more financial autonomy to them.
Additional funds would be transferred to the local government with the implementation of the decision which will enable them to improve the services delivery in their respective jurisdictions.
Provision of the additional resources to local governments would be made by reducing the provincial government revenue share.
The decision was made in the first meeting of the Resource Mobilization Committee for financial year 2022-23 held on Thursday.
The meeting was chaired by Punjab Finance Minister Hashim Jawan Bakhat while attended by Provincial Minister for Revenue Malik Anwar, Minister for Agriculture Hussain Jahanian Gardezi, Secretary Finance Iftikhar Ali Sahoo, Secretary Excise and Taxation, Member Board of Revenue, Chairman Punjab Revenue Authority and the officers concerned of the Finance Department.
The finance minister observed that increasing the resources of local governments will improve the service delivery of basic services to the people in the backward areas.
The necessary amendments are being introduced in the laws related to revenue in order to implement it. He said the increase in local government resources was aimed at increasing their stability and powers.
Earlier, the finance secretary apprised the meeting of the aims and objectives of the committee and said that in order to increase the resources of local governments, a summary of amendments to the immovable urban tax law is being prepared to ensure the transfer of resources.
The meeting discussed the proposals put forward by the Pre-Resource Mobilization Committee.
The meeting pointed out the shortcomings in the existing policy for collection of property tax and proposed to adopt an alternative policy.
The minister directed the Special Secretary Finance to propose a suitable mechanism of tax collection after consultation with all the tax collecting agencies for uniformity in the rate of property tax.