KARACHI, July 14: Property tax collection fell short by Rs21.50 million in Sindh during 2007-08.

Minister of Excise and Taxation Mukesh Kumar Chawla was informed at a tax officers meeting that Rs1,280.12 million were collected under property tax during the year.

Of this, Rs1,190.74 million were paid by the property owners in Karachi, while collection from entire Sindh was only Rs90 million.

The meeting discussed ways and means to boost property tax collections to match the real tax potential.

The minister stressed the need for a new survey of properties as a large number of new unit shave emerged since the last survey carried out in 2000.

The minister was informed that the valuation table defining value of properties has not been revised since 2000.

The property tax is charged at the rate of 20 per cent of the annual rental value of a property.

The distinction in tax rate between a unit self-occupied and the one on rent had been done away with a view to stop instances of mis-declaration by some owners.

The proceeds of property tax are transferred to towns which also determine the rate and classification of property units, to be approved by the local government department.

Meanwhile, the Gulshan Town has proposed a 50 per cent raise in property tax while other towns have their own ideas.

As it is not possible for the excise and taxation department to levy different tax rates, it has referred the issue to the local government department.

Town administrations also want property tax units to be placed under their supervision with offices on their premises.