RAWALPINDI, Feb 24: Director-General Military Lands and Cantonments (MLC) has sent a proposal to the defence ministry seeking tax exemption for the government employees having rented out their houses located in the jurisdiction of the cantonments, well-placed sources told Dawn.

The exemption has been sought both for the serving and retired government servants, the sources said. It is pertinent to mention here that, at present, the retired employees have 100 per cent tax exemption whereas the serving ones have 60 per cent exemption on self-occupied houses situated in the cantonments.

If the proposal for exemption on rented-out houses is accepted, it would greatly affect the revenue of both the cantonments, especially the Chaklala Cantonment whose residents are mostly retired or serving army officers, the sources said.

There are 10 Askari colonies, three general colonies and three defence schemes in Chaklala Cantonment where the retired and serving army officers are residing. Property tax is the main source of income for Chaklala and Rawalpindi cantonments. The CCB collects an annual revenue of Rs60 million from property tax which would be reduced by half if the exemption was given, the sources said.

Similarly, the RCB, which receives about Rs120 million annually from this sector, will have a shortfall of several millions rupees, the sources added. The burden would automatically be shifted to the civilian population that is already complaining of being discriminated against. We have been overburdened with taxes of different kinds but given no specific civic facilities, they complain.