LAHORE: Punjab Finance Minister Makhdoom Hashim Jawan Bakht has said that property tax will be based on rental value instead on area, and no duty or tax will be levied on entertainment at the provincial level.
He expressed these views while presiding over a meeting of the Ministerial Committee for Resource Mobilization 2021-22 here on Tuesday. It was attended by Punjab Industry and Commerce Minister Mian Aslam, Punjab Agriculture Minister Hussain Jahanian Gardezi, Punjab Board of Revenue Minister Malik Anwar, Punjab Irrigation Minister Mohsin Leghari, Punjab Finance Secretary, Punjab Excise and Taxation Secretary, Member of Board of Revenue, Punjab Revenue Authority Chairman and concerned officers.
He also told the meeting that introducing taxation that is beneficial to local governments, necessary amendments will be made in the Punjab Urban Immovable Property Tax Act 1958.
“Taxes collected at the local level will be used for delivering municipal services in the collection area while the municipal services will be defined in the Local Government Act before the new tax laws apply,” he added.
He added that the proposal to close the gap between personal use and tenancy in commercial property will also be considered.
On the occasion, the Finance Minister directed the Punjab Excise and Taxation Department to bring vehicle registration fee equal to the fee collected in the capital.
Mian Aslam Iqbal stressed the need for third party evaluation of commercial and rental properties instead of relying on the evaluation of excise officers, and added that property owners receive annual increment on their rent, but they avoid paying extra tax through illegal means.
“This needs to be checked and discouraged,” he added.
He directed the Finance department to reconsider the proposals for abolishing tax exemption on the basis of area in property tax and taxation in terms of value so that the best option could be selected at the next meeting.
Copyright Business Recorder, 2021