LAHORE, June 17: The Punjab government on Thursday proposed to exempt from property tax one house of five marlas used for residential purposes and falling under category D to G of the valuation in order to provide relief to the people in lower-income groups.

The relief has been proposed in the finance bill 2004 tabled in the provincial assembly by finance minister Sardar Hasnain Bahadur Dareshek. The bill proposes to reduce stamp duty to two per cent from 3-5 per cent on conveyance, exchange of property and gift and all related documents to provide relief to housing and construction sectors.

It also proposes abolition of stamp duty on the Memorandum of Articles of Association of companies to encourage establishment of new businesses in the province. In order to encourage the film industry, the government has reduced the rate of entertainment duty on cinemas to 15 per cent from 30 per cent at fixed charge per day.

On the other hand, the government has proposed to enhance the life-time token tax on motorcycles/scooters in view of the decrease in the prices of these vehicles. In addition to it, the bill seeks to 'rationalize' the rates of transfer fee, higher-purchase agreement and the fee for duplicate registration certificates, assignment of fresh registration mark of a motor vehicle taken outside Punjab and alteration made in vehicles.

Moreover, the base of professional tax has also been broadened to include contractors, suppliers. The rate of professional tax on doctors has been reduced and a uniform rate imposed on doctors and lawyers.

The test of competence fee for HTV, LTV and motor cars has also been raised. The government said the reductions in the rates of existing taxes far surpassed the 'rationalization' or increases in other charges and would result in a negative impact of Rs114 million on the provincial exchequer.