Islamabad (TDI): The Excise and Taxation Department Rawalpind has planned a crackdown against owners of luxury residences across the division who are habitual tax defaulters.
Per media reports, the excise department will target tax evaders who own two kanal or larger luxury houses in Rawalpindi Division, including cantonment areas.
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The one-time tax on properties expanding over a minimum of two kanals and 6000 square feet was levied under the Punjab Finance Act, 2014, and is only applicable to houses constructed after 2000.
“About 95 percent of owners of luxury residences in Rawalpindi Division have paid the one-time tax. The remaining five percent are defaulters,” the director of the Excise and Taxation department said, as quoted by the report.
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The report noted that a list of defaulters has been prepared and action will be taken soon.
The decision comes after Finance Minister Muhammad Aurangzeb announced a ‘war against tax evaders’ earlier this month.
Addressing a press conference in Islamabad, the finance minister shared alarming numbers about tax evasion in Pakistan.
He stated that annual tax theft amounts to nearly Rs7,000 billion and emphasized the government’s commitment to broadening the tax base and reforming the tax system.