New property tax mechanism delays bills

The Excise, Taxation and Narcotics Control Department (ETNCD) has yet to issue new domestic and commercial property tax bills to 90% of taxpayers despite passing three and half months of the ongoing fiscal year 2024-25.

The department adopted a new mechanism this year under which property taxes have to be collected based on rates approved by the Deputy Commissioner (DC) for different areas of the district. However, despite this change, the department has only managed to prepare property tax bills for around 10% of the areas.

The delay has severely impacted the collection of property tax and luxury tax, resulting in significant shortfalls for the department. The department's inability to meet its revenue targets for the first quarter of the fiscal year 2024-25 has raised concerns.

The ETNCD director-general has taken strict notice of the situation and directed all divisional and district tax offices to expedite the preparation of property tax bills.

The department has been instructed to distribute the bills to taxpayers immediately and recover property taxes. The aim is to increase revenue collection by October 31.