Govt all set to impose garbage tax in Punjab

There are recommendations to increase tax from Rs35 to Rs100-1,000

LAHORE:  

The government is preparing to impose the garbage tax on the residents of four districts of Punjab.

Express News reported that the preparation to impose garbage tax is being done on the residents of four districts of Punjab including Lahore. The Punjab government is considering the suggestion to collect about Rs100-1,000 per month under the garbage tax.

In this regard, the government will take approval from the cabinet division. The government of Punjab has excused running the waste management companies on debt. Four districts in Punjab, including Lahore, bear a debt of Rs46.85 billion.

The Lahore Waste Management Company is under the debt of Rs39.6 billion, Rawalpindi Waste Management Company is in a debt of Rs5.91 billion, Gujranwala company is in a debt of Rs1.22 billion, Sialkot Waste company is in a debt of Rs50 million Bahawalpur company is under the debt of Rs15 million. The waste management company is spending more than Rs14 billion monthly. Currently, the citizens of Lahore are paying Rs35 per house. There are recommendations to increase this amount as well, while the garbage tax in this regard will be imposed next year.

Earlier, the Pakistan Tehreek-e-Insaf (PTI) government had announced to impose ‘sin tax’ on smokers. The sin tax will be imposed on smokers who are the frequent buyers of cigarettes.

The amount collected from the sin tax will be spent on the health sector.

Moreover, the price of cigarettes is expected to rise in view of the government’s decision. The health ministry is considering various options regarding the sin tax. It is also planning to impose Rs5-15 tax on cigarettes. Sources said the sin tax can create an annual earning worth billions.

Pakistan will be the second country to impose a sin tax on cigarettes, after the Philippines that has a similar law.