RAWALPINDI: Punjab government has decided in principle to waive off the property tax for fiscal year 2014-15 for commercial outlets on Murree Road from Marrir Chowk to Faizabad on account of financial losses they faced during construction of road for metro bus.

However, businesses on the metro bus route in Rawalpindi Cantonment and Islamabad were not part of the exemption as property tax is collected by Rawalpindi Cantonment Board (RCB) and Capital Development Authority (CDA) in these areas.

The excise and taxation department has been asked to collect data on commercial property along the route.

Commissioner Zahid Saeed told Dawn that the government had decided in principle to provide relief to the businessmen whose businesses had been affected by the construction work.

He said the government would first assess the actual cost of the property tax and then send a list of the traders to the Punjab Chief Minister for final approval.

Not applicable to traders in CDA, RCB jurisdictions

He said the chief minister had the authority to waive off the property tax in emergency cases.

“In Lahore, the traders on the metro bus route got one-time waiver in property tax and the same policy will be applied in Rawalpindi,” he said.

On the other hand, the RCB has already sent tax collection bills to commercial outlets in Saddar which means that no exemption will be provided in Cantonment areas.

RCB senior official told Dawn that RCB, which is under the federal government, has not received any such instruction.

He added that tax collection had already begun and if the government decides to exempt the businesses, adjustments can be made in next year’s tax.

In Islamabad, businesses in main Blue Area, some parts of Peshawar Mor and I.J Principal Road have incurred losses during the construction of metro bus route. Here too, the federal government has not announced any tax exemption.

A senior official in the revenue department of the CDA said they had not received any directives in this regard.

CDA cannot bear the loss of revenue due to its weak financial position.

Former MNA of PML-N Malik Shakil Awan told Dawn that the provincial government had decided to provide relief to traders of Murree Road as they had suffered major losses during the construction work.

PML-N MPA Raja Hanif said he had raised the issue before the Punjab government and local leaders of Islamabad are responsible for taking up the issue with the federal government.

Published in Dawn, November 7th, 2014