Pindi's tax revenue declines by 60% in Q1

The excise department has significantly underperformed in meeting its revenue targets for the first quarter, particularly in the collection of property tax, professional tax and luxury tax.

In flood-affected districts, overall tax recoveries amounted to only 5 per cent, leaving a staggering 95% of collections unrealised. Consequently, the department is not expected to achieve even half of its annual tax targets this financial year.

In the Rawalpindi Division alone, tax collection during the first quarter fell short by 60%. Officials attribute the steep decline to crippling inflation, a diminished purchasing capacity, and rising unemployment, all contributing to historically low tax compliance.

Even though the department had announced a 5% rebate on the payment of property, professional, and luxury taxes if settled by 30 September and issued legal notices and warning of arrests and property seizures, many citizens remain unwilling or unable to pay.

A new potential scandal has also surfaced: taxpayers from two major housing societies in Rawalpindi, after receiving default notices, claimed they had already submitted payments to the designated excise inspector. This prompted the initiation of a formal inquiry into the matter and the official in question.