June 25, 2006Print : Newspost
Minister of state for finance, Umer Ayub Khan, has announced some steps for reducing the high price of property and land. Unfortunately people tend to see things in a negative light. They adopt ways to avoid paying their share of taxes. For example, many house-owners do not issue a receipt for the paid rent. They also do not sign an agreement of rent.
A person earning 10 to 15 thousand rupees cannot afford to have a reasonable small house in a decent locality. The house owner uses different tactics to raise the rent whenever they like making it difficult for these people to find proper accommodation.
I think the people who take houses on rent should be encouraged to take a receipt of the rent paid and sign an agreement with the owner, which would help the tax department to assess what the owner actually gets and what he should pay to the government in the form of tax.
I think if certain steps are taken timely by the tax department it would be able to generate revenue for the government on one hand and would address some difficulties faced by the people who have to pay such a high rents and finally push down the fake property prices.