Property tax shortfall rises to 57%

Amid severe inflation and record unemployment, the Excise, Taxation and Narcotics Control Department is facing a 57 per cent property tax shortfall in Rawalpindi Division.

The department failed to meet its property tax targets during the first six months of the fiscal year, from July 1 to December 31.

During his visit to Rawalpindi, Additional Director General Excise, Taxation and Narcotics Control Rizwan Akram Sherwani approved all appeals filed by taxpayers against excessive property tax bills. He ordered the cancellation of inflated bills and directed excise inspectors to issue corrected and reduced bills strictly in accordance with the law. Incorrect tax assessments were also annulled, and inspectors involved in issuing excessive and fictitious property tax bills were issued strict warnings.

Action has been initiated against specific excise inspectors who allegedly sent fake property tax bills worth millions to major housing societies and later issued reduced bills after settlements.

Meanwhile, the department imposed Rs1.5 million professional tax on a cricket ground belonging to a private housing society near Taxila and issued a bill, triggering strong protest from the society's management.

The additional DG conducted an open hearing of petitions filed by taxpayers from Rawalpindi, Jhelum, Attock and Chakwal, who had challenged property tax bills amounting to millions of rupees.

He declared all petitions and complaints valid, approved them, reduced the tax amounts and directed taxpayers to pay according to the revised bills.

He stated that the department's doors were open to complaints and that excessive billing would not be tolerated.

He urged citizens to pay their taxes on time, saying that developed nations are built on tax compliance and that providing public facilities was the department's responsibility.

For the first six months of fiscal year 2025-26, the department is facing an overall 57 per cent shortfall in property and professional tax collection in Rawalpindi Division.

Excise inspectors failed to achieve their targets, prompting the director general of excise to issue show-cause notices and order recovery of targets within the next two months.