Lahore: The Excise and Taxation (E&T) department has sent a summary to the Punjab government proposing a tax hike of 5% on owners of vacant plots bigger than 5 marlas in size, a news source reported. The tax percentage will be 5% of the properties’ government-notified rate.
According to the sources, E&T Additional Director General Rizwan Sherwani said that the implementation of tax on vacant plots at the government-notified rate will increase the due tax amount on owners by PKR 2,000 to PKR 20,000. As per the recommendation, tax collection under this criteria will begin from the fiscal year 2021-22. This would help government collect additional revenue of PKR 2 billion.
Furthermore, the government has set a target of expanding the number of registered vacant plots in Punjab from the current 150,000 to 500,000 in the near future. In this regard, directives have been issued to seek data from the owners of private housing schemes.
The news report revealed that that the provincial government currently collects PKR 100 million in terms of taxes from the owners of 35,000 vacant plots in Lahore. The authority has now decided to increase this count to 70,000.