LAHORE: A damning audit report has revealed widespread irregularities in the tax exemption process for 5-marla houses, with serious discrepancies and favouritism allegedly practiced by the excise department. According to the 2022-23 audit report, a staggering Rs 136.5 million in tax exemptions were granted under dubious circumstances, with many ineligible individuals exploiting the 5-marla house exemption clause to evade property taxes.
The audit report highlights glaring lapses, including cases where houses exceeded the 5-marla limit, while others lacked necessary documentation to qualify for exemptions. The report slams the department for granting exemptions without proper field verification and scrutiny, suggesting collusion and negligence among officials that resulted in massive losses to the treasury.
The authorities have been directed to ensure immediate recovery of the exempted amount and take action against those responsible. The audit report, tabled in the Punjab Assembly, recommends ensuring transparency in the tax exemption process to prevent such scandals in the future.
Copyright Business Recorder, 2025