Lahore: The Excise and Taxation Department has announced its decision to introduce relevant amendments in the Urban Immovable Property Tax Act 1958 — in order to allow the authorities to seal the properties of defaulters when required, a news source reported. In addition, other changes will also be made to the rules enacted under the act, where needed.
Previously the excise officials had permission to seal the properties of defaulters of property tax; however, the Lahore High Court had declared the act of sealing as an ultra-vires act. This was because the Urban Immovable Property Tax Act only mentioned attachments, and did not allow for properties to be sealed.
This meant that the excise department could attach properties of property defaulters, but could not seal them as a form of punishment. Additionally, the attachment only meant that such property could not be sold without an NOC by the excise department.
The excise department had previously prepared a draft of the amendments, but the cabinet had expressed its reservations on the matter. This is way the department made a decision re-draft the proposed amendments based on those reservations.