Physical inspection of property should be main duty of the taxation staff in case there is doubt regarding the amount.
KARACHI: The excise and taxation department of the Government of Sindh seems to be on a spree of issuing notices for the re-evaluation of property tax to property holders. Property tax as a rule is charged on the annual rental value (ARV) at the rate of 20 per cent of this ARV. However, when a property owner wants to pay his property tax and visits the department’s website he is disappointed to note that the said website states nothing about the method of calculating the ARV. Consequently, the property owner is compelled to go through the unnecessary hassle of physically contacting the excise officer concerned. This can be an unpleasant experience not least because the property owner is left at the mercy of the excise officer, for the evaluation of property tax that is to be paid.
In order to enable property owners to assess their own property tax in a transparent manner, at the very least, the excise and taxation department should have on its website the method at which the amount of tax is calculated. Though the property tax rate applicable to properties in different areas is stated on the website, there is nothing on how the aggregate tax applicable on a certain property is calculated.
Physical inspection of the property should be the main duty of the department’s staff in case there is any doubt regarding the amount calculated as property tax. It is hoped that the excise and taxation department will look into this problem and make its website more taxpayer-friendly and transparent.
Mazhar Butt
Published in The Express Tribune, December 23rd, 2012.
