The Excise, Taxation, and Narcotics Control Department in the Rawalpindi Region has significantly underperformed its tax collection targets for the fiscal year 2024-25, specifically in the areas of property tax and professional tax. The department has only managed to achieve 48% of its overall target, resulting in a substantial shortfall of 52%.
In stark contrast, the Motor Branch within the department demonstrated remarkable success, surpassing its revenue targets by a notable 150% in categories such as new vehicle registrations, motorcycle registrations, transfer fees, and token taxes. Despite this success, the total revenue collected for the Rawalpindi region stands at Rs680 million, primarily buoyed by the Motor Branch’s performance.
Sunday Operations and Controversial Billing Amidst Shortfall
In response to the department’s “complete failure” in collecting domestic and commercial property taxes, professional taxes, and luxury taxes, the Director General of Excise has issued a directive to cancel weekly Sunday holidays. Starting this Sunday and continuing until the beginning of the new fiscal year (July 1st), all Excise offices will remain open on Sundays in an intensified effort to boost revenue recovery.
Adding to the controversy, the department has reportedly initiated a new tactic to increase tax collection by issuing revised property tax bills under different names for previously taxed residential units. An example cited is that of Advocate Najma Malik, who reported receiving a new tax notice for Rs157,000 under her husband’s name, despite having already paid Rs150,000 in property tax under her own name. This new notice was reportedly based on signage outside her house, which she has challenged with her previous tax receipt.
Crackdown on Defaulters Intensifies
As part of its ongoing drive, the department has scaled up its crackdown on tax defaulters. So far, 241 property units have been sealed, leading to the recovery of Rs3.1 million in overdue taxes. Excise Inspectors have also been instructed to leave their offices and engage in direct field collection of taxes, aiming for more proactive enforcement.
However, with only 12 days remaining until the close of the fiscal year, achieving the ambitious collection targets for property tax, luxury tax, and professional tax appears increasingly unlikely. The department faces a formidable challenge in bridging the significant financial gap before the new fiscal year commences.
