LAHORE: The Punjab Assembly’s Standing Committee on Excise has approved a bill amending the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958) for introducing a reward mechanism for individuals, both citizens and excise officials, who report cases of tax evasion.

The proposed legislation likely to sail through the House says that any person who provides credible information leading to the detection of property tax evasion will be recognised as a “whistle-blower” and entitled to a monetary reward.

The bill seeks to encourage public participation in strengthening the province’s tax regime, which has long suffered from loopholes and under-reporting.

Officials of the Excise and Taxation Department identifying and taking action against the tax evasion will also be eligible for incentives under the amended law.

‘Whistle-blower’ to get prize out of recovered tax

Clause 15-A inserted to the Act reads: (1) The commissioner, on recommendation of the collector, may sanction reward, out of penalty imposed, to whistle-blowers in cases of concealment or evasion of tax, fraud, corruption or misconduct providing credible information leading to such detection of tax.

(2) The government may prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for the whistle-blowers.

(3) The claim for reward by the whistle-blower shall be rejected, if: information provided is of no value; or assessing authority already had such information; or information was available in public records; or no collection of taxes or penalty is made from the information provided.

Likewise, clause 15-B added to the Act reads: (1) In cases involving concealment or evasion of tax, cash reward shall, only after realisation of part or whole the taxes involved in such cases, be sanctioned to officers and officials of the Excise, Taxation and Narcotics Control Department for their meritorious conduct in such cases or for other meritorious services leading to the detection of such cases.

(2) In case concealment or evasion is detected, the collector shall fix the responsibility of such concealment or evasion.

(3) The government may prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for individual performance or to collective welfare of the officers and officials of the Excise, Taxation and Narcotics Control Department.”

Published in Dawn, July 17th, 2025