Property tax drive falls short of target

Protests erupt over sealing of homes and shops during Eid holidays

RAWALPINDI:

The Excise, Taxation and Narcotics Control Department in Rawalpindi district has failed to meet its property tax recovery targets despite sealing a total of 381 houses and property units since the Eidul Fitr holidays.

The department is facing a 52 per cent shortfall in property tax collection, and with the last quarter of the current fiscal year (April to June) about to begin, achieving the set targets appears unlikely.

Excise and Taxation Director General Umar Sher Chattha has expressed strong displeasure and directed all officers and staff to leave their offices and perform field duties.

Due to severe inflation and a record decline in income sources, tax recovery in inner-city areas and old commercial centres - including Raja Bazaar, Bara Bazaar, Dingi Khoi, Jamia Masjid Road, Kalan Bazaar and City Saddar Road - has dropped significantly.

Property tax recovery in these areas, both commercial and domestic, stands between 30 to 33 per cent, while the shortfall in inner-city areas has reached up to 70 per cent.

Officials face resistance from residents, with both men and women engaging in arguments and even physical confrontations with recovery teams due to financial hardships. This situation has further increased the difficulties faced by Excise staff.

A large number of citizens have challenged property tax notices in courts. Newly issued tax bills, based on deputy commissioner area rates, are 20 to 30 per cent higher than last year, while tax rates in commercial areas have decreased under DC valuations.

Residents in new housing societies across Rawalpindi, as well as along GT Road, Kallar Syedan Road and Daultala Main Road, have also complained about receiving fake property tax bills.

Citizens Farhad Khan and Fawad Hassan Abbasi said their incomes had declined while inflation had increased by 300 per cent.