Urbanised union councils to get tax notices from January

People in these rural areas were until now not required to pay property, water tax

RAWALPINDI: Civic bodies have planned to start issuing tax notices and bills to people residing in 19 rural union councils of the district which have been upgraded to urban areas, officials said.

These union councils include Shakrial East, Shakrial West, Khanna Dak East, Khanna Dak West, Rehmatabad, Dhok Munshi, Chaklala, Morgah, Koth Kalan-I and Koth Kalan-II, Lakhan, Dhamial and Chak Jalal Din.

The rural communities, so far enjoying a tax-free status, have expressed indignation over the property tax notices and bills for water and sanitation. However, many areas of these union councils have become urbanised and commercialised.

Former chairman of Union Council Rahmatabad Taj Abbasi said the government has yet to provide facilities like tap water, drains, health and sanitation, streets, lanes and street lights. The authorities cannot tax people for facilities which have not been provided, Abbasi said.

Moreover, the Lahore High Court Rawalpindi Bench has issued a stay order against levying taxes on the newly urbanised rural councils, he said.

Among these former rural union councils, seven have been included in Rawalpindi Metropolitan Corporation, eight in Potohar Municipal Corporation and four in Dhamial Municipal Corporation. These union councils house 500,000 commercial and residential units. Every shop has been declared commercial unit separately.

Subsequently, the Excise and Taxation Department has decided to bring the homes of these union councils in the property tax net. The residents of these areas will start getting property tax notices from the start of the new year.

Similarly, the Rawalpindi Development Authority (RDA), Water and Sanitation Agency (Wasa), Rawalpindi Solid Waste Management Company (RSWMC) have also completed preparations to bring water tax, sanitation tax, sewerage tax to the residents of these 19 union councils from the beginning of the new year.

Houses measuring five marlas will be exempt from property tax. All larger homes, shops, plazas, markets will be subjected to property tax. Notices for payment of property tax were being sent to all of the residential and commercial units along with sanitary, sewerage and water tax

Earlier this year, Chief Minister Punjab Usman Buzdar had barred the excise and taxation department from recovering property tax from houses in the rural areas of Punjab, including Rawalpindi division.

The representatives of 19 rural union councils of Rawalpindi district had expressed displeasure on the decision and announced to stage a sit-in outside the department’s office. Moreover Abbasi had acquired a stay order against levy of tax on these union councils. CM Buzdar taking notice of the situation stopped excise and taxation from brining rural areas in property tax net.

However, the authorities were set to start issuing notices again.

Under a new law, Rawalpindi having population of more than 1.5 million will be declared a metropolitan city. With the abolishment of district councils and new delimitation, some union councils had been declared as urban areas where residents were required to pay taxes.

The old union councils were: Ratta Amral, Dhoke Ratta, Hazara Colony, Dhoke Mangtal, Dhoke Hasu, Fauji Colony, Bangash Colony, Khayaban-i-Sir Syed-I, Khayaban-i-Sir Syed-H, Dhoke Naju, New Katarian, F-Block, Saidpur Scheme, Eidgah, Dhoke Babu Irfan, Pindora, Satellite Town, Asghar Mall, Qayyumabad, Dhoke Kashmirian, Dhoke Ali Akbar, Sadiqabad, Afandi Colony, Muslim Town, Khuram Colony, Chah Sultan, Dhoke Hukam Dad, Amarpura, Kartarpura, Banni, Imam Bara Mohalla, Mohanpura, Dhoke Dalal, Ganjmandi, Waris Khan, Purana Qilla, Shah Chan Chiragh, Millat Colony, Dhoke Khabba, Dhoke Farman Ali, Chamanzar Colony and City.

The new union councils added to the city were: Sharial-1, Sharial-2, Sharial-3, Khanna Daak-1, Khanna Daak-2, Gangal, Chaklala, Rehmatabad, Kotha Kallan-1, Kotha Kallan-2, Morgah, Kalial, Adiala, Dhaman Syedan, Dhamial, Mohri Ghazzan,Lakkhan, Chak Jalal Din-I, Chak Jalal Din2, Girja, Banjial and Ranial.

Published in The Express Tribune, December 28^th, 2019.