Revision Of Property Taxes

Revision of Property Taxes

The Lahore Chamber of Commerce and Industry has called for a downward revision of property taxes, claiming that the existing rates are hindering business growth.

The Chamber raised the demand after it received complaints from its members against the increase in property tax across Punjab.

A statement by the Chamber pointed out that wherever an industry is situated, it must be considered an industrial area even if it is a rural area. It must not be treated as in urban area. This was after the Tehsil/Town Municipal Officers served an industry located in rural areas with footage measurement.

Such actions are bound to cause irreparable damage to the socio-economic structure that would ultimately hit the present regime.

The Chamber suggested that both the provincial and federal governments should construct a formula about the maximum and minimum percentage of a person’s income and what the person or people should expect in return.

The government must initiate Public-Private Dialogue to resolve the issues within the business community.

Citing an example, the Chamber indicated that in Lahore, Davis and MM Alam Roads have been put in category-A. This is despite the fact that commercial value of property at MM Alam Road is much higher than property situated at the Davis Road.

The excise department determines the property tax on the basis of rent charged at MM Alam Road while the rental value at Davis Road is one-third. Such discrepancies should be addressed to make the system more transparent.

Thus the Lahore Chamber of Commerce and Industry urged the government to resolve the issue of increase in property tax rates immediately.