Pakistan

Tax on luxury houses, cars, marriage halls proposed: Sources

Punjab government proposes taxes on luxury houses, vehicles, farm houses, marriage halls and parks for Budget 2011.

Express May 29, 2011

LAHORE:

The Punjab government has proposed imposition of taxes on luxury houses, vehicles, farm houses, marriage halls and parks in the upcoming budget.

Sources say an increase in the registration fee of vehicles and property taxes is also likely in the budget.

New housing societies will also be brought under the tax net to increase revenue for the government.

A 50% increase is likely in the registration fee of vehicles and motor bikes. The provincial government is currently holding meetings to finalise the budget.

In a recent report in The Express Tribune, Finance minister Abdul Hafeez Sheikh refrained from giving away specifics but seemed to indicate that the government was gearing up to remove exemptions on several sectors in order to bring them into the tax net.

He also made no mention of subsidies, fuelling speculation already circulating the capital that the government will drastically reduce the amount it spends on providing untargeted subsidies.

COMMENTS (14)

Atif Iqbal | 13 years ago | Reply I appreciate this decision made by Punjab Govt. and look forward for making such more tough decisions.

Husain Zaidi | 13 years ago | Reply I am already paying Rs.1100 as annual tax of my 24 years old car as it is registered with Motor Registering Authority Rawalpindi which comes under Punjab Government. It would become too much if the tax is increased by 50%.

VIEW MORE COMMENTS

Stonge Age | 13 years ago | Reply I think first of all , above tax issue, we have to cut down luxuries which is been using by our bureaucrats, Like, they done pay their house electricity bills, they turned on their Air conditioners for 24/7 as they knew that they don't have to pay a single penny.. their cars petrol, their pays in 100 thousands, what is this ? until unless we dont fix these issues we can not move ahead.

GHULAM SARWAR | 13 years ago | Reply the only way for betterment of economy is , wastage of public money be stopped, our officials political and non political observe no limitations while spending, our pm and presedent go abroad with all friends and families and stay in expesive areas, our ambossidor in france live in a locality where presedent of france cannot afford to live. if you look at govt. cars they are being used at home by kids. within the revenue collection areas a lot of correuption is seen, the present govt. particularly select the most corrupt individual from inland and abroad for top positions, there are already to much taxes on common man. look at fuels. foods. machinery. indirect taxes are at highest ratio all over. a person who spends ten thousand at his home in daily use , he pays about four thousand tax,this money sucked from the blood of the most poor goes in the hands of those who have countless wealth. despite paying this all there is nothing like govt in country, on the roads in govt. offices, law and order situation......it is said that we are at war, just look at the condition of policeman standing in burning sunshine.... and......motorcade of those who should be behind the bars so another attempt of cruel taxation will naturally create frustration in public which is neither good for public nor for so-called democratic govt.and people already looking towards army at present will force army to come in as was done at the time of pm bhutto. which may not be good but when disease crosses a limit the only way is surgery and when surgeon comes with his instruments then he has to decide every thing because it becomes his liability it is time for trouble creators holding the public offices to respond to the cries of poor and not to play with their feeling with slogans. because next surgeon may come with sharper tools

sam | 13 years ago | Reply first the law makers should pay tax , and second they should curb inflation rather than imposing higher taxes to fill their pockets up...while printing curency to pay for the nations requirements..... the so called leaders must first be selfless if they wish to succede... imposing higher taxes every few months IS NOT A SOLUTION....

Fahmid | 13 years ago | Reply Nawaz Sharif, Shukat Aziz and the likes -- as long as they have to rule our country, the burden will be borne by just poor people. They brought wrong policies to FBR and literally made it more hostile to poor instead of rich.

Hameed | 13 years ago | Reply There are many policies which are doing no good to the Nation. Government is not trying to create jobs by formulating business friendly policies rather they are converting people as baggers through the schemes like "Benazir Income Support Programme". Such schemes make people idle and dependent upon "Khairat" rather than earning through their laborious work. Best way to give them financial freedom is to make policies which help develop "Cottage Industry". If small units are made and operated by the Government in the rural and under-developed urban areas and after their successful operation, ownership may be transferred to the local people on "Cost Price". People may say that small loans can also play the same role but I will recommend this as our "Corrupt System" has proved to be failed as number of times and the money distributed as Loans could not be recovered due to one reason or the other. So, best way is to established "Cottage Industry", operate it, make it profitable and then transfer the ownership to the local people at Cost Price.

Mirza | 13 years ago | Reply @Billoo Bhaya: Love you man. You are absolutely right. Now you would see Pakistan army would do the right thing after they have tried every trick in the world. They can deceive their own helpless and naive people but cannot deceive Americans. We would not let them get our tax $$ without any return.

Billoo Bhaya | 13 years ago | Reply @Mirza: Agree. My wife's family pay fully loaded tax, water and conservancy charges for their DHA home, whereas the General living next door is exempt. Asma Jehangir was absolutely right when she said on Mehr Bokhari's program on May 26th that the Army was the biggest Kabza Group in Pakistan. They have occupied and enslaved us all. Henry II said " who will rid me of this meddlesome priest?" referring to Becket. Three of his barons went to Canterbury and finished Becket off. But how are we going to rid ourselves of this meddlesome army??

AK | 13 years ago | Reply Why dont brothers propose 500% tax on land cruisers and bullet proof cars and 500% tax on Raiwind properties.

Maria | 13 years ago | Reply This will be great news if the Punjab government can apply these taxes across the board and people are taught to pay their fair share of taxes. Then at least the Punjab province won't have to rely on any foreign assistance or money.

Saqib | 13 years ago | Reply only the poor will be taxed 50% increase in car tax is a killer for people all ready suffering from the greed of government

Mirza | 13 years ago | Reply It is all fine and fair as long as DHA and the marriage halls at army/navy/airforce bases are exempt.

sunny | 13 years ago | Reply Rich should pay tax. As they use Govt roads and all facalities more than to poor.If one has car He/She is using road and those have no car not not using that road at all. Please do that. It will be good if Punjab do that!

Replying to X