Punjab govt increases share of property tax of local govts to 95pc

LAHORE: Punjab government has decided increasing share of the local governments from the property tax by 10 percent to 95 percent that is 85 percent more for financial autonomy to them.

Additional Rs1 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.

Provision of the additional resources to local governments would be made by reducing the provincial government revenue share. The decision was made Thursday in the first meeting of the Resource Mobilisation Committee for the financial year 2022-23.

The meeting was chaired by the Punjab Finance Minister Hashim Jawan Bakht while attended by provincial Revenue Minister Malik Anwar, Agriculture Minister Hussain Jahanian Gardezi, Finance Secretary Iftikhar Ali Sahoo, Excise and Taxation Secretary, Member Board of Revenue, Punjab Revenue Authority chairman and officers concerned of the finance department. The finance minister observed that increasing the resources of local governments will improve the service delivery of basic services to the people in backward areas. The necessary amendments are being introduced in the laws related to revenue in order to implement it. He said the increase in local government resources was aimed at increasing their stability and powers. Earlier, the finance secretary apprised the meeting of the aims and objectives of the committee and said in order to increase the resources of local governments, a summary of amendments to the immovable urban tax law is being prepared to ensure transfer of resources.

The meeting discussed the proposals put forward by the Pre-Resource Mobilisation Committee. The meeting 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.