Govt Considering To Bring Down Tax Rate To Increase Revenue Generation: Minister

Punjab Finance Minister Hashim Jawan Bakhat Tuesday said the Punjab government wanted the profitable taxation in the province for the taxpayers and was considering to bring down the tax rate to increase the tax collection and revenue generation

LAHORE, (UrduPoint / Pakistan Point News - 15th Sep, 2020 ) :Punjab Finance Minister Hashim Jawan Bakhat Tuesday said the Punjab government wanted the profitable taxation in the province for the taxpayers and was considering to bring down the tax rate to increase the tax collection and revenue generation.

He said this while chairing a meeting regarding resources mobilization for the fiscal year 2020-21 here at civil secretariat. The meeting was also attended by Punjab Minister for Excise and Taxation Hafiz Mumntaz Ahmed, Minister for board of Revenue Malik Anwar, Minister for Health Dr Yasmin Rashid, Irrigation Minister Mohsin Leghari, Secretary Finance Abdullah Sumbal, Chairman Punjab Revenue Authority (PRA) Zain-ul-Abidain Sahi and officials of the departments concerned.

There was no logical justification for tax exemption on five marla properties as the property tax should be imposed on the valuation of the property, he said and stressed the need of revisiting the property act 1958 to improvise the property taxation system in Punjab.

The minister suggested linking of the municipal services and property taxation as improvement in water, sanitation and waste management services would increase the value of the property.

The minister said that the government was introducing reforms to strengthen the local governments in Punjab by increasing the resources and powers for them. He said it was a golden opportunity for the local government to make improvements in the water and sanitation facilities, waste management services and other municipal services to increase their revenue generation.

He said that revenue collected by the excise department and other agencies would be allocated to the local government in the future.

The meeting reviewed the proposal of the excise and taxation department on immovable urban areas properties and recommended to consult with PRA and local government department besides approval from the excise minister.

The meeting approved the existing valuation table for property taxation till June 2021 and expanded the remission threshold to 100 percent from 90 percent.