Punjab faces billions of rupees losses in property tax revenue

Rawalpindi : The Punjab government is reportedly losing billions of rupees in property tax revenue each year due to alleged systemic corruption within the Excise and Taxation (E&T) Department in Rawalpindi. Instead of enforcing the law, some officials in the property tax branch allegedly discourage citizens from paying their actual tax amounts, manipulating tax assessments for personal gain.

An entrenched network of officials and clerks in the E&T Department has been allegedly demanding substantial bribes in exchange for reduced tax rates on commercial properties. By paying bribes, property owners can secure significant reductions in their tax liabilities. As a result, compliant citizens who refuse to engage in these illicit deals are often penalized with inflated taxes, while others enjoy reduced rates through under-the-table transactions. This unethical practice not only burdens honest taxpayers but also deprives the provincial government of critical funds.

Frustrated property owners have expressed their grievances, likening their struggle against the E&T corruption to a “rolling stone” effect, with many knocking on multiple doors to secure accurate tax assessments, often to no avail.

Despite numerous complaints and ongoing investigations, corruption remains rampant. Many property tax clerks and inspectors face cases and inquiries by the National Accountability Bureau (NAB), the Anti-Corruption Establishment, and the Federal Investigation Agency (FIA). However, these cases have seen little progress over the years, allegedly due to the influence of well-connected individuals within the E&T department.

While federal and provincial governments have urged citizens to pay taxes to support the national economy, the E&T Department has failed to issue fair tax assessments to law-abiding taxpayers. Instead, officials reportedly prioritise “challans” for individuals who engage in underhanded deals, leaving others frustrated.

For instance, if the actual tax on a commercial property amounts to Rs200,000, owners can reduce this to Rs10,000 by paying Rs150,000 in bribes to corrupt property inspectors, saving around Rs40,000 but at a significant cost to government revenue.

In response, Punjab Chief Minister Maryam Nawaz has appointed Captain (r) Farrukh Attique as the new Director General of Excise and Taxation, replacing Faisal Fareed in a bid to dismantle the corrupt network. Plans are also in motion to replace Own Pay Scale (OPS) clerks currently working as inspectors in the E&T department, aiming to restore integrity to the property tax assessment process.

Meanwhile, E&T Director Imran Aslam, when approached by ‘The News’, defended the department, claiming he had approved appeals for accurate tax assessments and pledged to monitor corruption closely. However, his assurances stand in contrast to reports that the corrupt network remains influential, allegedly through blackmail tactics against senior officers using compromising videos and other evidence.

Excise and Taxation Officer (ETO) Kulsoom Zara acknowledged the public’s frustration and claimed she was committed to resolving tax-related issues. Yet, she admitted being constrained by the power held by clerks and inspectors. The discrepancy between her claims and Director Aslam’s statements highlights the lack of accountability among department leaders, who seem unable or unwilling to address the corruption effectively.

In a surprising twist, a superintendent who also holds the position of Excise and Taxation Officer (ETO), has allegedly been exploiting the public through various illegal means. Despite numerous complaints against him, no disciplinary actions have been taken. Similarly, some contractors continue to function as inspectors, reportedly abusing their authority without repercussions.

A number of E&T officials are said to be running the E&T Department’s affairs through private offices and tout networks across their sectors. These “touts” are tasked with targeting vulnerable citizens, compelling them to pay bribes under the guise of tax relief.

Fed-up residents of Rawalpindi have issued a plea to Chief Minister Maryam Nawaz, urging immediate action against the E&T’s corrupt officials. They have called for thorough investigations into the personal assets and properties of these officials to expose the full extent of their illicit gains and restore public trust in the taxation system.