KARACHI, Jan 19: Property tax now billed on yearly basis will be collected on the mode of utility bills every month. Under a proposal being discussed by the Sindh Ministry of Excise and Taxation, the property tax will be issued on a monthly basis with the condition of a due date for payment and attracting penalty on late payment.

A senior ministry official requesting anonymity told Dawn on Friday that the move was aimed at fast realisation of revenue and to eliminate corruption, resulting in huge loss to the exchequer.

He said the ministry would take all aspects of the proposal into consideration before making a final decision.He gave the example of Karachi Water and Sewerage Board, which recently converted its water bills charged yearly into monthly bills to be paid in banks along with other utility bills.

The official said with the introduction of property tax on monthly basis, recovery of property tax would be expedited.

It will also eliminate instances of non-payment of water bills by some big consumers in connivance with the department staff.

He said the ministry would organise seminars to ascertain views of all the stakeholders on the proposal. He said the ministry was busy in computerising record of all property units in Karachi and the interior which would not only help increase revenue, but would also facilitate issuing of bills on monthly basis.

Property tax contributes 65 per cent of the total Sindh revenue fetching over Rs9 billion annually. The proceeds of the tax are transferred to the city district government under the devolution programme.

Meanwhile, builders and estate dealers have strongly opposed the idea of monthly payment of property tax, saying no scheme could bear fruits unless there is a sincerity of purpose and honest dealings.

Commenting on the reason for fast realisation of revenue advanced by the ministry, chairman Association of Builders and Developers (Abad), Hafeez-ur- Rehman Butt, said that the Karachi Water and Sewerage Board is sitting on 26 applications for water connection submitted by Abad members involving millions of rupees.

The delay in sanctioning legal water connection by the board is encouraging applicants to go for illegal connections.

He, however, did not believe the ministry’s plea that the issuance of property tax on monthly basis would eliminate corruption.

The corrupt staff would still indulge in wrongdoings by demanding illegal money to make assessment of property in favour of the owner.

Chairman, United Defence Clifton Estate Agents Association, Raja Mazhar, said that the proposal would not benefit the property owners as they would have to pay penalty on the expiry of due date of monthly bills.

The present billing system entails no penalty and on the contrary allows five per cent rebate to owners, who pay their property tax by Sept 30.

Ordinary property owners have, however, welcomed the proposal, saying it would relieve them from burden of paying bigger amount on yearly basis.

Presently, they do not get property tax challans on time, resulting in accumulation of tax.

They said it would be easier for them to pay the tax with other utility bills at one time.

They said the yearly tax bills received in July at the start of financial year used to upset their monthly budget.

The bill on monthly basis would help them to plan their budget accordingly.