Urban property tax: LHC seeks audit report of union councils

Local govt secretary says tax is being recovered to meet expenses of town municipal administration.

LAHORE:

The Lahore High Court on Thursday directed the government to submit four-year audit reports of all union councils in the province along with their income and expenditure details.

Justice Syed Mansoor Ali Shah passed the order on several petitions challenging the recovery of urban property tax under the local government ordinance. The local government secretary had defended recovery of the tax, however, the Excise Department had claimed that it was authorised to recover the tax.

The local government secretary had further stated that the tax was being recovered to meet expenses of the town municipal administration.

Justice Shah asked the secretary to explain the expenses of town administrations when there was no local government system. The judge adjourned the hearing for a month and directed the government to submit audit details of all union councils in the province. The petitioners had said the local government was recovering urban property tax and the Excise Department was already recovering the same tax. The petitioners said one could not be subjected to double taxation.

Published in The Express Tribune, May 23^rd, 2014.