LGs empowered to impose 5pc tax on immovable property

Author: Kashif Hussain

LAHORE: The Punjab Assembly on Wednesday passed a bill empowering legal governments (LGs) to impose five percent tax on urban immovable property
to mop up revenue independently.

While opposing the bill, opposition benches termed it a burden on poor masses, who were already paying taxes in 41 different categories. Opposition members were of the view that the provincial government had used the development funds on its own projects, and empowering of LG representatives to collect newly imposed tax at union council (UC) level would deal a blow to the poor.

Giving some amendments to the bill, opposition members said had the government brought back the $200 billion stashed in Swiss banks and “looted money” mentioned in the Panama leaks, there would have been no need to impose new taxes.

On a point of order, Pakistan Tehreek-e-Insaf (PTI)-backed Opposition Leader in the House Mian Mehmoodur Rasheed criticised the government for enhancing prices of petroleum products twice in a month and demanded the speaker to table a resolution against the increased petroleum prices, which was denied by the speaker.

All legislators of different opposition parties, including, Pakistan People’s Party (PPP), Pakistan Muslim League-Quaid (PML-Q) and PTI protested against the chiar’s decision and walked out from the assembly. However, they rejoined the session after some time.

The House passed both the Punjab Urban Immovable Property Tax (Amendment) Bill 2016 No 47 and 48 with majority without accommodating any proposed amendment to
the bills.

The opposition leader and members, including Shenila Ruth, Arif Abbasi, Faiza Malik, Mian Aslam Iqbal, Sardar Hassan Akhtar Moakal and Dr Waseem Akhtar termed the tax “forced extortion” and injustice with poor people.

Responding to criticism by opposition members, Law Minister Rana Sanaullah said that the government had empowered LGs to impose tax up to 5 percent on urban immovable properties only. He also clarified that it was not a rental value tax.

Opposition benches also strongly opposed the a bill regarding the Punjab Civil Administration Bill 2017 No 1, saying that political parties at an all parties conference had already rejected the revival of deputy commissioner system, saying “it would strong bureaucracy against democratic system in the country”.

The Punjab Assembly session Wednesday started one-and-a-half hour late to its scheduled time at 10am with Speaker Rana Iqbal in the chair. Later, the speaker adjourned the session till today (Thursday) 10am.