Excise struggles with 56% revenue shortfall

Property tax offices will remain open today

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RAWALPINDI:

The Excise, Taxation, and Narcotics Control Department in Rawalpindi, is facing a major tax collection challenge, reporting a 56% shortfall in property tax, luxury tax, and professional tax for 2024.

The director general of the department has issued strict directives for officers and inspectors to achieve at least 60% of the target by December 31. Field officers have been instructed to leave their desks and focus on on-ground collections.

To expedite the process, property tax offices will remain open on Sunday, December 29. While the motor branch has achieved 100% of its targets for vehicle registrations and sales, property tax collection remains dismal, largely due to outdated deputy commissioner (DC) property rates causing delays in tax bill distribution.

In response, excise teams have intensified operations, sealing 17 defaulting properties, arresting nine individuals, and recovering Rs1.6 million in overdue taxes. Midnight raids on habitual defaulters' residences have also been conducted, and commercial property owners have been given a two-day ultimatum to pay their dues.

Citizens have voiced strong opposition to property tax calculations based on DC rates. Faisal Malik Advocate and Arshad Shah criticised the practice as unjust, especially with looming plans to align taxes with Federal Board of Revenue rates. Legal challenges against these taxes are now pending in the high court.