The provincial government of NWFP is unlikely to achieve the revenue target of Rs 2.00 billion for the current financial year. The Department of Excise and Taxation had so far recovered Rs 800 million against the target, showing a recovery of 40 percent during the last eight months of the year.
NWFP Minister for Excise and Taxation, Liaquat Shabab stated this in a press briefing here at the media centre of the Directorate of Information on Tuesday. He was flanked by senior officials of the department. The minister said that though recovery made so far was below the expectation. However, he said that the department usually improves recovery in the last three months of the financial year. He said that the militancy and insurgency in the province was badly affecting the collection of the revenue of the provincial government.
He said the department last year had made a recovery of Rs 50 million only in head of motor-vehicle registration in Swat. The district, he said, along with other districts included Malakand, Dir and Buner were exempted of property tax.
In reply to a question he confirmed exempting cinemas from the entertainment taxes. He said that entertainment industry due to peculiar situation requires relief to save it from scrambling. However, hinted at maximum increase in the professional tax on doctors, who are paying merely Rs 1,500 per annum.
The provincial minister said that the government was working for transparent recovery of the revenue and provision of all possible facilities to tax payers. In exhibition of the spirit, the provincial government had amended the complicated property tax system of residential units through introducing flat rates system.
The system is simple, easy and understandable for common man. The system, he said besides benefiting millions of property taxpayers in the province will also increase in the receipts of the province. He directed all concerned officers of the department of excise and taxation to stamp flat rates of property tax on the notice issued to the taxpayers. The measure will help facilitate the taxpayer about the length of his house and amount of annual tax on it.
Liaquat Shabab said that the department had also considered the ratio of taxes between big and small cities. For instance, he said, annual tax on a 10 Marla house in the provincial metropolis is Rs 1,500 per year. While a residential unit of the same category at former divisional headquarters included Mardan, Abbottabad and D I Khan etc is Rs 1000. Similarly, property tax on the same category of residential unit at district headquarters is Rs 750 while such houses at the level of tehsil headquarters and other areas are liable to an annual property tax of Rs 500 per unit.
He also made it clear that exemption from property tax on five Marla residential units has been given on the personal used house. The present government, he added, was considering waiving up an amount of Rs 139.20 million outstanding against the people to give relief to the recession hit people. The provincial minister said that the government was working on plan for putting the revenue collection of the province on modern lines.
The measure, he said besides making tax collection transparent will also facilitate the general public. After successful computerisation of the motor registration system, he said the department has started the computerisation process of the property tax in collaboration with the department of Science and Technology. The project that will cost an amount of Rs 39.512 million and in first phase all record relating to property tax in Peshawar had been computerised. The phase in other province will be completed by May 2011.
The computerisation of the property tax was first step of this nature and now other provinces have expressed desire to follow the footprints of NWFP in computerisation of the property tax system. The establishment of a web-site for maintaining the record of property tax was also part of the project, which will provide information to taxpayers on their properties.
The department will go for further expansion of the property tax system and will provide all necessary facilities for taking benefit of the Geographic Information System (GIS) that will not only increase tax net but will also make the system more transparent.