LAHORE: The Punjab Excise and Taxation Department has received 8 percent of the target of luxury tax on big houses during the six months of the current fiscal year.
The department has showed poor performance and collected only Rs 37.8 million in six months. In budget 2014-15, the Punjab government passed a finance bill, allowing the department to impose luxury tax on two and more than tow kanal houses in cities like Lahore, Rawalpindi, Multan and Faisalabad, but it failed to meet Rs 500 million target.
Another reason for low recovery is that the court barred the department from collecting tax. Some taxpayers moved the Lahore High Court against this tax and got stay order. The Punjab government has not yet submitted reply in the court in this regard. The department is facing same situation in collection of farm house tax.
