Taxing property

The government collects a number of taxes and other charges for the services and facilities it provides to the people. It collects charges from electricity and gas consumers. The users of domestic water are also billed. A road tax is levied for the use of roads and highways. Provision of certain municipal services and facilities are also paid for by the people. In each case a concept of give and take exists.

The rationale behind property tax, however, is not understood by me. I was not given any property free of cost by the government. I purchased my property at an exorbitant price in the open market with funds that I had declared in my income tax returns. It is an asset that I have created with my lawful funds. I could have bought gold instead to create the same asset. In all fairness, income tax filers should not be asked to pay any property tax. However, any income generated by these assets may be taxed as per existing law.

Arshad Mahmud

Islamabad