Industrialists reject property valuation tables

Split on rate of increase tax in proposals sent to province.

FAISALABAD:

A majority of trade and industry associations have rejected the survey, categories and valuation tables of property tax with many suggesting a 25% increase in the tax without going into the intricacies of classification and valuation.

Some associations, while pointing to a slump in the local market, argue that the tax should not be increased by more than 10%.

These were part of the recommendations for the Punjab budget for 2014-15 prepared and sent by the Faisalabad Chamber of Commerce and Industry (FCCI) to the provincial government after consulting leading business and industrial associations of the city.

The proposals were discussed in a meeting attended by representatives of the All Pakistan Textile Processing Mills Association, Pakistan Hosiery Manufacturers Association (PHMA), Anjuman-e-Tajiran, Power Looms Association and others. The director of excise and taxation was also present.

Speaking on the occasion, FCCI President Engineer Suhail bin Rashid said textile processing mills had called for a separate tax category for the industrial units housed in different areas of Faisalabad.

They suggested that there should be only three categories – up to 2 acres, from two to 10 acres and above 10 acres.

Storages and offices of industrial units should also be considered part of the factory and the industry rate should be applied to them, they said.

In order to facilitate the government in generating more funds, the industrialists and traders unanimously supported a proposal to increase the lifetime token fee on motorcycles from Rs1,200 to Rs2,000.

Similarly, the government should levy and recover taxes from Qingqi rickshaws, as collected from commercial vehicles.

Rashid praised PHMA Chairman Khawaja Amjad, who stressed that the government was heavily spending on development projects and “now we are duty-bound to contribute our share in the form of enhanced taxes and duties.”

He also backed steps taken by the provincial government, particularly the Excise and Taxation Department, for computerisation of motor vehicle registration, web-based motor vehicle tax calculator, SMS service for verification of token tax and particulars of vehicles through 9966, un-detachable number plates, scanning and entry of historical record.

He asked the government that it should discourage coercive measures employed by tax collectors as these were the main hurdle in the way of expanding the tax net in Pakistan.

Published in The Express Tribune, June 8^th, 2014.

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