Small homes face hefty property tax bills

After failing to collect property tax from posh areas, major housing societies, commercial areas and large houses, the Excise, Taxation and Narcotics Control Department has started sending property tax bills ranging from Rs0.15m to Rs0.2m to small houses. Houses measuring two, two-and-a-half and three marlas have also been brought back into the tax net after an exemption granted 25 years ago, with hefty bills being issued and houses sealed over non-payment. This has led to disputes between department staff and citizens, raising fears that an unpleasant incident could occur at any time. The Punjab government had exempted privately owned houses measuring up to five marlas from property tax across the province 25 years ago. However, for the past two years, the Rawalpindi Division has faced a continuous 50 per cent shortfall in property tax collection from large shopping malls, plazas, large houses and major housing societies. To make up the shortfall, the department has started issuing hefty property tax bills to all small and large houses and has begun sealing small houses and arresting owners. In some cases, tax has reportedly been recovered from poor citizens by selling household belongings, resulting in disputes. Citizens said property tax on houses measuring up to five marlas was exempt, but houses measuring two to four marlas had now been issued property tax bills ranging from Rs150,000 to Rs300,000.