The Faisalabad Chamber of Commerce and Industry president told the Punjab secretary excise and taxation that the proposed tax rate for immovable property is not acceptable by the business community, adding that a 500 percent increase in taxes have been proposed without any consultation with the stakeholders in the current survey.

“Proposed property taxation and valuation tables are under consultative process and will be finalised after due consultation with the business community,” said Mr Shahid Ashraf Tarrar, Punjab secretary excise and taxation.

He said that the declaration of valuation tables was not based on the ground realities. Moreover, ‘A’ Category could not be applied for Faisalabad and tax amount will be increased from Rs20,000 to Rs120,000 with the proposed valuation tables.

He said that owing to higher inflation, shortage of electricity and gas supply to the industries, higher prices of industrial inputs, new taxes being introduced by FBR and Banks’ high mark-up rate  have already rendered the incapacity of business community’ to pay increased property taxes and needed the statuesque in the circumstances.

Addressing the members of Faisalabad Chamber of Commerce and Industry, the secretary categorically said that the proposed property taxation and valuation tables were in draft form. He said that property tax survey becomes due after every three to five years and revised rates are imposed based on the fresh survey. He invited nomination of some members from the FCCI to include in the committee being constituted to finalise the rate of property tax and valuation tables.  He said that land record in five large cities of Punjab was being computerised which will provide immediate access to the property holders for tax evaluation and fight corruption as well. He said that in addition to Lahore, other cities like Faisalabad, Rawalpindi and Multan have been included first time in the ‘A’ Category of property taxation.

He said that he was mindful of the difficulties and severity of the problems that industry and business are facing these days and the government was also fully aware of the situation. However, these will be communicated to the higher authorities accordingly. He said that bearing capacity of assesses will be taken into consideration for least taxation burden to them.