Saturday October 16, 2021

Punjab to increase LGs share in property tax by 10pc

September 10, 2021

LAHORE:Giving more financial autonomy to local governments, the Punjab government has decided to increase their share from the property tax by 10 percent from 85 to 95 percent.

Additional Rs3 billion would be transferred to the local government with the implementation of the decision which will enable them to improve the services delivery in their respective jurisdictions.

This decision was made in the first meeting of the Resource Mobilisation Committee for the financial year 2021-22, Thursday. The meeting was chaired by the Punjab Finance Minister Hashim Jawan Bakht while attended by Provincial Minister for Revenue Malik Anwar, Minister for Agriculture Hussain Jahanian Gardezi, Secretary Finance Iftikhar Ali Sahoo, Secretary Excise and Taxation, Member Board of Revenue, Chairman Punjab Revenue Authority and officers concerned of Finance Department. The finance minister observed that the implementation of the decision will enable local governments to improve the services delivery in their respective jurisdictions. Provision of the additional resources to local governments would be made by reducing the provincial government revenue share. He said the necessary amendments are being introduced in the laws related to revenue in order to implement it.

Earlier, the finance secretary apprised the meeting of the aims and objectives of the committee and said that in order to increase the resources of local governments, a summary of amendments to the immovable urban tax law is being prepared to ensure the transfer of resources. The meeting also discussed the proposals put forward by the Pre-Resource Mobilisation Committee and pointed out the shortcomings in the existing policy for collection of property tax and proposed to adopt an alternative policy. The minister directed the Special Secretary Finance to propose a suitable mechanism of tax collection after consultation with all the tax collecting agencies for uniformity in the rate of property tax.