The Lahore Chamber of Commerce and Industry on Friday has rejected raise in property tax rates and urged the government to withdraw this decision immediately. During a meeting with MNA Pervez Malik and Secretary Excise and Taxation Khalid Masood, the LCCI President Ijaz A Mumtaz termed the raise in property tax against business community. LCCI Senior Vice President Mian Nauman Kabir, Vice President Syed Mehmood Ghaznavi, former Presidents Sheikh Muhammad Asif, Muhammad Ali Mian, former SVPs Irfan Iqbal Sheikh and Mian Tariq Misbah also spoke on the occasion. The meeting discussed new property tax rates in detail.
On the occasion, a six-member committee was also formed comprising officials of the Tax department, Syed Mehmood Ghaznavi, Sheikh Muhammad Asif, Muhammad Ali Mian and Nasir Saeed to prepare its recommendations that would be submitted to the Punjab Chief Minister Shahbaz Sharif.
The Secretary Excise and Taxation Khalid Masood also directed the director general to arrange meeting with the representatives of different markets and trade associations for their feedback on property tax rate. LCCI President Ijaz A Mumtaz said that the LCCI had received a number of complaints from its members against increase in the property tax.
He proposed that both the provincial and federal governments should come out with a formula about the maximum and minimum percentage of one's income and what the person or people should expect in return. Mumtaz said that government must initiate Public Private Dialogue to resolve the issues of business community. He pointed out that in Lahore, Davis Road and MM Alam Roads have been put in "A" category though the commercial value of property at M M Alam Road is many times higher than that at Davis Road. Moreover he added the Excise department determines the property tax on the basis of rent charged at M M Alam Road while the rental value at Davis Road is 1/3rd. He said such discrepancies should be addressed to make the system more transparent.
Former president of LCCI Sheikh Muhammad Asif said that government has to resolve the issue of increase in property tax rate immediately as it is creating unrest in the business community. Former president of LCCI Muhammad Ali Mian said that the Excise and Taxation department has served notices with unprecedented increase in various markets which were then replaced by new notices with 50 percent increase therein as mentioned by the E&T department. He said this process of serving notices should be revised.
LCCI Vice President Syed Mahmood Ghaznavi said that business community is not ready to accept even one percent increase in the commercial property tax rates due to the current economic conditions in the country. He suggested bringing down the commercial rates to zero percent. He said that he had a meeting with Hamza Shahbaz who has assured to resolve the issue on priority basis. He said that Punjab government had taken various business friendly initiatives.