KARACHI, Sept 5: Property tax collection fell by Rs25 million to Rs1276.5 million in 2007-08 against Rs1301.6 million collected in 2006-07.

The figures were revealed at a meeting held to review the property tax collections.

Minister for Excise and Taxation Mukesh Kumar Chawla expressed concern over decline in property tax collections and directed the officers to expedite efforts to collect property tax to its full potential.

The minister was informed that the decline in the collection was owing to some big defaulters who owe about Rs25 million in taxes. These include government organisations, big hospitals and corporations. Many of the defaulters went to the court.

Mr. Chawla directed the officers to issue show-cause notices to defaulters and take action for non-payment, which also includes sealing of premises.

He also directed that new units be brought under tax net and misdeclaration of area of property be avoided to avoid payment of due tax through surprise visits made from time to time.

He warned that strict action would be taken against taxation officers found giving any favour to owners in assessment of property tax.

Director general of excise and taxation Asif Marghoub Siddiqui told Dawn that as a result of renewed efforts, property tax collection in the first month (July) of the current fiscal year rose by Rs52 million to Rs343.1 million against Rs290.7 million in July 2006-07.

To a query he said that the department was opposed to any raise in property tax rates. However, it has written to the Sindh Local Government Department to revise the valuation table for property, which is a legal formality.

Under the law, the valuation table is required to be revised after every five years.

Under the SLGO, property tax and entertainment tax have been devolved and its proceeds are transferred to the city government, but its collections responsibility rests with the excise and taxation.

The department collected Rs3.984 million in entertainment tax during July 2008-09 which is Rs0.98 million more than the tax collected in July last year.