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.

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.