KARACHI, Aug 29: The Sindh Excise and Taxation ministry has turned down a proposal from Gulshan Town to revise the property tax rate upward by 50 per cent for 2007-08. The property tax department told the nazim that the rate could not be raised for one district.

A tax official told Dawn on Tuesday that the town nazim had convened a meeting of tax officials in which he requested that new property tax challans be made with the tax rate enhanced by 50 per cent.

The tax officials, however, informed the nazim that they have not received any instructions from the ministry to raise the tax rate for any town.

The department, however, cannot issue challans with different tax rates as the billing system is still not computerised.

The tax officials told Dawn that the department had sent letters to the Secretary of Excise and the Gulshan Town nazim informing them the tax rate for only Gulshan Iqbal and Gulistan Jauhar could not be raised in isolation and a decision should cover all immovable property units situated in all districts.

He said the department had started issuing tax challans for 2007-08 at old rates and about 1,000 challans are being issued daily.

The town council had recommended increase in the property tax rate by 50 per cent, and it was approved by the local government department and a notification was also issued.

The property tax proceeds, which are collected by the Sindh ministry of excise and taxation, are transferred to the City District Government under the SLGO.

The CDGK plans to gradually take over collection of property tax by setting up tax units in each town. It also plans to issue tax challans presently and assign property tax inspectors to offices of union councils in each town.