The Excise, Taxation and Narcotics Control Department has begun issuing property tax bills of Rs0.15 million to Rs0.2 million to owners of small houses in the Rawalpindi Division, sealing properties over non-payment.
Houses measuring two, two-and-a-half and three marlas have been brought back into the tax net. The Punjab government had exempted privately owned houses of up to five marlas from property tax across the province 25 years ago.
The department has failed to collect tax from upscale localities, major housing societies, commercial areas and large houses. For the past two years, the Rawalpindi Division has recorded a continuous 50 per cent shortfall in collection from large shopping malls, plazas, large houses and major housing societies.
To cover the gap, the department has issued heavy bills to both small and large houses. It has also started sealing small houses and arresting owners. In some cases, tax has reportedly been recovered from poor residents by selling their household belongings.
The actions have led to disputes between department staff and residents, raising concerns that an untoward incident could occur at any time.
Residents said houses of up to five marlas were exempt from the tax, but those measuring two to four marlas have now received bills ranging from Rs150,000 to Rs300,000.
