The government of Punjab has taken the decision to withdraw the increase in property tax. Punjab Minister for Excise and Taxation Hafiz Mumtaz Ahmad and Secretory Waqas Ali have played important roles in it. The withdrawal of an increase in the property tax will provide relief to the business community.
To raise tax revenues, the Punjab government had previously decided to increase property taxes. The government had increased the commercial property tax from 10 percent to 300 percent per annum in its federal and provincial budgets for 2021-22. The Lahore Chamber of Commerce and Industry (LCCI) and small traders started protesting the hike in property tax and demanded that the government withdraw the increase in the property tax. According to the president of LCCI, they were only protesting the unfair taxation and will be open to paying taxes otherwise. Chief Minister of Punjab Usman Buzdaar has accepted the recommendation of LLCI to reverse the property tax hike and ease the problems of the business community.
This decision comes as a good omen as the business community is already facing challenges due to rupee depreciation, an increase in the key policy rate, and soaring inflation. The reversal of the hike would help build trust in the government and promote public-private partnerships (PPP).
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