Friday, January 31, 2014

Property Tax, Punjab, Pakistan: All the Roles

Roles in Property Tax Collection and Assessment

To get a good grasp of property tax, it's very important to understand the various roles in its collection and assessment. Once you have a clear picture of these roles in your mind, you will be able to understand your rights and responsibilities in relation to your properties. Let's start with some Q&A to outline these roles.

Who Assesses Property Tax?

The Assessing Authority assesses property tax. The role of the Assessing Authority is filled by the Excise and Taxation Officer (ETO). He performs this role under the provisions of the Punjab Urban Immovable Property Tax Act, 1958. It is important to note that this is not the only role which an Excise and Taxation Officer performs; his other roles include Registering Authority for registration of motor vehicles, Assistant Collector, etc.

As the Assessing Authority, the ETO assesses properties for levying property tax. The value determined by the assessment he makes becomes the basis of property tax on the assessed properties. That is, for a given tax rate (e.g. 20%), the value to be taxed is the value determined by the Assessing Authority, i.e., the Excise and Taxation Officer (ETO).

Who Collects Property Tax?

The Assistant Collector collects property tax. The role of Assistant Collector is again filled by the Excise and Taxation Officer under the provisions of the Punjab Urban Immovable Property Tax Act, 1958. While performing his role as an Assistant Collector, the ETO has the power to arrest defaulters, implement orders to seal properties, etc.

Who Pays Property Tax?

The owner of a property pays property tax. In general, this is the sole responsibility of the owner, but there are exceptions. A tenant of a property must pay property tax if he is directed by the Excise and Taxation Officer to do so. However, the tenant has the right to deduct the property tax he pays from the rent payable to the owner. Similarly, there are situations when a possessor of a property or any other party interested in the title of the property may pay property tax.

Who Gets Property Tax?

The local government gets property tax collected by the Excise and Taxation Department. The local government spends this collected tax money on sanitation, street lights, and other local needs.

Who Hears Property Tax Appeals?

The Director of Excise and Taxation hears appeals against assessments made by Excise and Taxation Officers. If a person feels his property has been given an unfairly high assessment, he may file an appeal in the court of the Director of Excise and Taxation. The Director hears the versions of both the ETO and the taxpayer and makes a decision. He may also have his staff inspect the assessed property, or may inspect the property himself.

Who Hears Property Tax Revisions?

The Executive District Officer (EDO) hears Property Tax revisions. (A property tax revision disputes the decision on an appeal made by the Director of Excise and Taxation.)


You may also like to read:

Property Tax, Punjab, Pakistan.

cd2351cb1978de6c2831d76699aadf9638effbe2cdd076b040






No comments:

Post a Comment