Punjab Finance Minister Hashim Jawan Bakhat said that there is no logical justification for tax exemption on 5 marla property while the property tax should be imposed on valuation of property and there is a need for revisiting the Property Act 1958 to improvise property taxation system in Punjab.
The minister suggested linking of the municipal services and property taxation as improvement in water, sanitation and waste management services will increase e value of the property.
He said the Punjab government wants profitable taxation in the province for the taxpayers and considering bringing down tax rate to increase tax collection and revenue generation.
The minister expressed these views chairing maiden meeting of the resources mobilization committee meeting of the fiscal year 2020-21 here at civil secretariat on Tuesday.
The meeting was also attended by Punjab minister for excise and taxation Hafiz Mumtaz Ahmed, minister for Board of Revenue Malik Anwar, Minister for Health Dr Yasmin Rashid, Irrigation Minister Mohsin Leghari, Secretary Finance Abdullah Sumbal, Chairman Punjab Revenue Authority (PRA) Zain ul Abidain Sahi and official of the concerned departments.
The minister observed that the government was making revolutionary reforms to strengthen the local governments in Punjab by increasing the resources and powers of them.
He said it was a golden opportunity for the local government to make improvements in the water and sanitation facilities, waste management services and other municipal services to increase their revenue generation.
He made it clear that revenue collected by the excise department and other agencies would be allocated to the local government in the future.
The meeting reviewed the proposal of the excise and taxation department on immovable urban areas properties and recommended to consult with PRA and local government department and get approval from minister excise to again present in the next meeting of the resources mobilization.
The meeting approved the existing valuation table for property taxation till June 2021 and expanded the remission threshold to 100 percent from 90 percent.
