Excise begins revised tax bills' distribution

Taxpayers no longer entitled to right to appeal against 'inflated' bills

RAWALPINDI:

The Excise, Taxation, and Narcotics Control Department has commenced the distribution of property tax bills across the Rawalpindi division.

The bills are based on the new official property rates set by the relevant deputy commissioners.

According to sources, the move comes after the withdrawal of property tax exemptions for five-marla houses, with even smaller houses, as small as 1.5 to 2 marlas, now receiving hefty tax bills.

The sudden increase has caused widespread distress among taxpayers, leading to confrontations between residents and Excise Department teams in neighbourhoods.

Additionally, taxpayers are no longer entitled to relief or the right to appeal against the new property tax bills, which are deemed final.

Even erroneous bills are considered valid, and no adjustments to the tax amount will be made, sources said.

The decision to withdraw exemptions on small houses was implemented earlier this week due to Punjab's severe economic and financial crisis. The province faces a shortfall in revenue, compelling authorities to increase income by targeting all categories of properties. Consequently, the Excise Department has started delivering revised tax bills to property owners across urban and rural union councils in the Rawalpindi division.

Reports indicate that disputes between residents and Excise Department employees have escalated since the distribution began. The financial strain has been exacerbated by a 56 per cent shortfall in property tax collection for the first half of the current fiscal year, ending December 31, 2024.

In response, authorities have eliminated all tax exemptions.

Meanwhile, citizens have announced their intention to challenge this move in the Lahore High Court's Rawalpindi bench, describing it as an unjust burden on small homeowners and commercial property owners.

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