Pindi property tax shortfall hits 56%

The property tax shortfall of the Excise, Taxation and Narcotics Control Department in Rawalpindi has reached an alarming 56 per cent in the ongoing financial year 2025-26, with the department facing serious difficulties in tax collection.

Taking strict notice of the low recovery, the Director General has directed all officers and staff to intensify field operations. Meanwhile, the Excise Department has begun preparations to launch door-to-door collection of the sanitation (garbage) tax from the beginning of the new year.

Once the official government notification is received, work on the preparation of sanitation tax bills will commence, with a decision taken to begin house-to-house distribution from January 10.

Under the proposed structure, the sanitation tax has been fixed at Rs300 for residential houses, Rs1,000 for shops, and between Rs2,000 and Rs5,000 for large commercial outlets and large residential properties.

A spokesperson for the Excise and Taxation Department stated that it remains unclear whether small residential units exempted from property tax will also be liable to pay the sanitation tax, as comprehensive data on tax-exempt properties is currently unavailable.

A fresh survey will therefore be required, for which assistance will be sought from former union council chairmen and councillors.

Discussions with the competent authority regarding the sanitation tax collection mechanism are ongoing. Once finalised, a formal circular is expected to be issued between December 31 and January 3, after which sanitation tax bills will be prepared in accordance with the issued guidelines. The sanitation tax will be collected from all households in both urban and rural areas, and action will be taken against defaulters.

Excise Department sources confirmed that the property tax shortfall has reached a worrying 56 per cent, noting that many taxpayers receive bills but fail to make payments and often engage in disputes with staff.

The Director General has issued strict instructions to all Excise Inspectors and Superintendents across Rawalpindi Division to remain in the field to ensure recovery. Inspectors in areas failing to meet targets by December 31 will face transfers.