PART – IX [TAXATION]

Letter No. SOTAX (LG) 2-19/2018(Vol-I), Govt. of the Punjab, LG&CD Department dated 17.08.2023 regarding “Appointment of Board of Revenue (Bor) and Punjab Land Records Authority (PLRA) as Agencies for Collection of Tax on Transfer of Immovable Property (TTIP) on Behalf of Local Governments of the Punjab”.

NO. SOTAX (LG) 2-19/2018(Vol-I)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 17th August, 2023

To
The Administrators,
All local governments of the Punjab.

The Chief Officers,
All local governments of the Punjab.

Subject: APPOINTMENT OF BOARD OF REVENUE (BOR) AND PUNJAB LAND RECORDS AUTHORITY (PLRA) AS AGENCIES FOR COLLECTION OF TAX ON TRANSFER OF IMMOVABLE PROPERTY (TTIP) ON BEHALF OF LOCAL GOVERNMENTS OF THE PUNJAB #

I am directed to refer to this department’s letter of even number dated 21.07.2023 on the subject noted above and to state that all local governments are directed to collect Tax on Transfer of Immovable Property (TTIP) manually where oral mutations are being carried out an account of non-computerization of revenue estates by the Punjab Land Records Authority.

SECTION OFFICER (TAX)

C.C:

The Senior Member, Government of the Punjab, Board of Revenue.
The Member (Taxes), Government of the Punjab, Board of Revenue
The Director General, Punjab Land Records Authority.
The President, Bank of the Punjab, Lahore.
PSO to Secretary, LG&CD Department.
PS to Special Secretary, LG&CD Department.
PA to Additional Secretary (LG), LG&CD Department.

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Letter No. SOTAX (LG) 2-19/2018, Govt. of the Punjab, LG&CD Department dated 21.07.2023 regarding “Appointment of Board of Revenue (BOR) and Punjab Land Records Authority (PLRA) as Agencies for Collection of Tax on Transfer of Immovable Property (TTIP) on Behalf of Local Governments of the Punjab”

NO. SOTAX (LG) 2-19/2018(Vol-I)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 21st July, 2023

To
The Administrators,
All local governments of the Punjab.

The Chief Officers,
All local governments of the Punjab.

Subject: APPOINTMENT OF BOARD OF REVENUE (BOR) AND PUNJAB LAND RECORDS AUTHORITY (PLRA) AS AGENCIES FOR COLLECTION OF TAX ON TRANSFER OF IMMOVABLE PROPERTY (TTIP) ON BEHALF OF LOCAL GOVERNMENTS OF THE PUNJAB #

I am directed to refer to the subject noted above and to enclose herewith a copy of Notification of even number published in the Punjab Gazelle on 06.06.2022 whereby Board of Revenue (BOR) and Punjab Land Record Authority (PLRA) has been appointed to collect Tax on Transfer of Immovable Properly (TTIP) on behalf of all local governments of the Punjab after charging its service fee.

2. I am further directed to request you to proceed in light of ibid Notification as Board of Revenue, Punjab is going to implement the collection of TTIP trough e-Stamping System w.e.f 25.07.2023

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 5-75/2021, Govt. of the Punjab, LG&CD Department dated 23.05.2022 regarding “Compliance of Order passed in Writ Petition No.34149/2021 Titled “Total Parco Pakistan Limited vs., Province of Punjab etc. – Sign Board/ Signage in compliance with the Companies Act and SBP Policy – Levy of Advertisement Fee under Clause 7(2) of Advertisement Model Bye-Laws on the Banks, Petrol Pumps etc., Which Have Installed Boards Over and Above the Size of 30 Sq.ft.”

NO. SOTAX (LG) 5-75/2021
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 23rd May, 2022

To
The Administrators,
All Local Governments in Punjab.

Subject: WRIT PETITICON NO.34149/2021 TITLED TOTAL PARCO PAKISTAN LIMITED VS. PROVINCE OF PUNJAB ETC” #

I am directed to refer to this department’s letter of even number dated 04.03.2022 on the subject noted above and to state that Clause 7(2) of Advertisement Model Bye-Laws pertains to grant of exemption to the shopkeepers on the non-branded board up to size of 30 sqft installed on their shops from payment of shop sign charges.

2. I am further directed to state that banks and patrol pumps are included in outdoor advertisement as defined in Clause 2(aa) of the Advertisement Model Bye-Laws, hence, exemption can be granted to these entities up to 30 sqft. Furthermore, provisions of the Companies Act, 2017, State Bank of Pakistan Policy and Pakistan Oil (Refining, Blending. Transportation, Storage & Marketing) Rules, 2016 when conjunctively read with ibid Bye-Laws, It transpires that size of board up to 30 sqft is also sufficient for banking company or any other oil marketing company to meet the legal requirements.
3. I am, therefore, directed to request you to ley advertisement fee under Clause 7(2) of ibid bye-laws on the banks, petrol pumps etc., which have installed boards over and above the size of 30 saft

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 5-75/2021, Govt. of the Punjab, LG&CD Department dated 04.03.2022 regarding “Compliance of Order passed in Writ Petition No.34149/2021 Titled “Total Parco Pakistan Limited Vs., Province of Punjab etc. – Sign Board/ Signage in compliance with the Companies Act and SBP Policy – Liability to Pay the Scheduled Advertisement Fee Notified by the Local Government Concerned”

NO. SOTAX (LG) 5-75/2021
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 04th March, 2022

To

The Administrators,
All Local Governments in Punjab.

Subject: WRIT PETITICON NO.34149/2021 TITLED TOTAL PARCO PAKISTAN LIMITED VS. PROVINCE OF PUNJAB ETC” #

I am directed to refer to this department’s letter of even number dated 09.11.2021 on the subject noted above and to clarify that in compliance with the Companies Act, 2017, State Bank of Pakistan Policy and Parisian Oil (Refining, Blending, Transportation, Storage & Marketing) Rules, 2016, every company is liable to display in a conspicuous position, in letters easily legible in English or Urdu characters its name and incorporation number outside the registered office and every office or the place in which its business is carried on. In addition to this, every Company related to oil marketing is liable to prominently display rnaximum sale prices of petroleum products at its retail outlets.

2. | arm further directed to state that provisions of above said laws and policy when conjunctively read with the terms of the judgment of Single Bench of Hon’ble Court passed in Writ Petition No. 129536/2018 (2020 LHC 3135) led to draw an inference that a local government, being a regulator of advertisement through a sign board / signage, is responsible to determine the size of the sign board / signage installed by the company suitable for the purpose of displaying its name, incorporation number and prices of petroleum products (in case of oil marketing company) legibly and prominently and every company including oil marketing company installing sign board / signage over and above the size determined by a local government shall be liable to pay the scheduled advertisement fee notified by the local government concerned.
3. I am, therefore, directed to request you to take further necessary action accordingly.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-21/2019, Govt. of the Punjab, LG&CD Department dated 17.11.2021 regarding “Guidelines/Instructions Regarding Issues Relating to Collection of Advertisement Tax Amongst the Contractors of Local Governments in the Punjab and Vendors of National and Multi-National Companies”

NO. SOTAX (LG) 2-21/2019
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 17th November, 2021

To
The Chief Officers,
All Local Governments In Punjab.

Subject: GUIDELINES / INSTRUCTIONS REGARDING ISSUES RELATING TO COLLECTION OF ADVERTISEMENT TAX AMONGST THE CONTRACTORS OF LOCAL GOVERNMENTS IN THE PUNJAB AND VENDORS OF NATIONAL AND MULTINATIONAL COMPANIES. #

In continuation of this department’s latter of even number dated 31.12.2019 and 09.03.2020 on the subject above and to streamline the mechanism regarding collection of advertisement tax and to resolve the issues amongst the local government and contractors of the local governments, the following revised instructions / guidelines are hereby issued for strict compliance.

That all parties concerned will adhere to the provision(s) of Punjab Local Government (Taxation) Rules. 2016. Punjab Local Government (Auction of Collection Rights) Rules, 2016 and Advertisement Byelaws. 2017.
The Auction of the contractor of Advertisement fee is usually carried out in accordance with the Reserve Price which is calculated as per average income of last three preceding years for the head of income of the respective local government. however, all local government in the Punjab will also carry out the on-site survey as per actual number and size of boards to ascertain the genuine demand of advertisement fee in the jurisdiction of a local government as per Rule 7(b) or the Punjab Local Government (Budget) Rules, 2017.
All local governments in Punjab will ensure proper execution of agreement made between concerned local government and the Contractor as per Rule 23(1) Of the Punjab Local Government (Auction of Collection Rights) Rules. 2016.
All local governments in the Punjab will attach local government employees with the Contractor to collect the advertisement fee on government Challans / Receipts as per schedule rates of the respective local government in the light of Rule 25(e) of the Punjab Local Government (Auction of Collection Rights) Rules. 2016.
Overcharging and over billing may not be allowed in any circumstances by the local government functionaries according to Rule 24(1) and (2) of the Punjab Local Government (Auction of Collection Rights) Rules, 2016.
The local government functionaries must ensure the enforcement of all the relevant provisions in public interest and may not allow anyone (person or company) to fix the advertisement material without the proper approval or permission.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 5-75/2021, Govt. of the Punjab, LG&CD Department dated 09.11.2021 regarding “Compliance of Order passed in Writ Petition No.34149/2021 Titled “Total Parco Pakistan Limited Vs. Province of Punjab etc, – Sign Board/ Signage in compliance with the Companies Act and SBP Policy”

NO. SOTAX (LG) 5-75/2021
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 09th November, 2021

To

The Chief Officers,
All Local Governments in Punjab.

Subject: WRIT PETITION NO.34149/2021 TITLED “TOTAL PARCO PAKISTAN LIMITED VS, PROVINCE OF PUNJAB ETC” #

I am directed to refer to the subject noted above and to state that the Hon’ble Lahore High Court, Lahore vide order dated 04.11.2021 directed the local governments in the Punjab to implement its earlier Judgment passed in Writ Petition No. 129536/2018. Relevant para of the Judgment is reproduced below:

22.(vi) Banks and corporate entities are entitled to install sign board/ Signage incompliance with the Companies Act and SBP Policy without charge of fee subject to any rules or regulations on size, shape and provided It does not contain any advertisement material”
(2020 LHC 3135)

2. I am, therefore, directed to request you to implement the above judgment in letter and spirit and not to charge advertisement fee from the banks and corporate entities in violation of the terms in the above judgment

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 1-46/2008 (MC Dunyapur), Govt. of the Punjab, LG&CD Department dated 30.08.2021 regarding “Advertisement Tax on Wall Painting / Chalking”

NO. SOTAX (LG) 1-46/2008 (MC Dunyapur)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 30th August, 2021

To
The Chief Officer,
Municipal Committee,
Dunyapur, District Lodhran.

Subject: ADVERTISEMENT TAX ON WALL PAINTING / CHALKING #

I am directed to refer to your letter No. MC/DNPI294 dated 28.07.2021 on the subject noted above and to state that Punjab Prohibition of Expressing Matters on Walls Act, 1995 prohibit the expression of matters on the walls in the Punjab, Section 2 of the said Act is reproduced as under:-

Section 2. Prohibition of expressing matters on walls.– Whoever affixes or causes to be affixed any poster, bill, notice, placard or other paper or means of advertisement on a wall or writes on any wall with chalk or paint or in any other manner whatsoever or expresses or describes any matter on any wall in any manner whatsoever with the intention to attract public attention to that matter shall be punished with imprisonment for a term which may extend to six months or with [2][fine which shall not be less than twenty five thousand rupees or more than one hundred thousand rupees] or with both. Exception.– It shall not be an offence under this Section, if the owner or possessor of the wall expresses any particulars relating to himself or his business thereon.

2. l am, therefore, directed to request you to proceed accordingly.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 1-1/17(MCL), Govt. of the Punjab, LG&CD Department dated 01.07.2021 regarding “Approval / Gazette Notification of Taxation Proposals of all Local Governments in the Punjab”.

NO. SOTAX (LG) 1-1/17(MCL)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 1st July, 2021

To

All the Administrators
Metropolitan Corporation / Municipal Corporation / Municipal Committees /
Tehsil Councils / Town Committees in the Punjab

I am directed to refer to the subject noted above and to state that vide Section 156(2) every local government is required to abide by directions of the Finance Commission under clause (f) and (g) of subsection (1) of Section 180 of Punjab Local Government Act, 2019. As envisaged in clauses (f) and (g) of Section 180(1). the Finance Commission has been empowered to fix upper and lower limits of local taxes etc. as it considers appropriate; and fix an enhanced incidence of tax etc. if a local government is under fiscal distress.

2. I am further directed to state that as far as provision pertaining to vetting of taxation proposals existing in Punjab Local Governments (Taxation) Rules, 2016 is concerned the same cannot be executed / invoked being inconsistent with the main statute in terms of section 312(3) of PLGA, 2019.
3. I am, therefore, directed to request you to proceed as per Punjab Local Government Act, 2019, wherein, the Government is not required under law to vet taxation proposals.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-21/2019, Govt. of the Punjab, LG&CD Department dated 09.03.2020 regarding “Guidelines/Instructions Regarding Issues Relating to Collection of Advertisement Tax Amongst the Contractors of Local Governments in the Punjab and Vendors of National and Multi-National Companies”

NO. SOTAX (LG) 2-21/2019
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 9th March, 2020

To

All the Administrators,
Metropolitan Corporations, Municipal Corporations,
Tehsil Councils, Municipal Committees and Town Committees
In the Punjab.

Subject: GUIDELINES/INSTRUCTIONS REGARDING ISSUES RELATING TO COLLECTION OF ADVERTISEMENT TAX AMONGST THE CONTRACTORS OF LOCAL GOVERNMENTS IN THE PUNJAB AND VENDORS OF NATIONAL AND MULTI NATIONAL COMPANIES. #

In continuation of this Department’s letter of even number dated 31.12.2019 on the subject noted above and to streamline the mechanism regarding collection of Advertisement Tax and to resolve the issues amongst the local governments and contractors of the local governments, the following revised instructions / guidelines are hereby issued for strict compliance:

i. That all parties concerned will adhere to the provision(s) of Punjab Local Governments (Taxation) Rules, 2016, Punjab Local Government (Auction of Collection Rights), Rules, 2016 and Advertisements Byelaws, 2017.
ii. Contractors will strictly observe the terms and conditions of agreement made or to be made with the concerned local governments regarding collection of Advertisement Tax.
iii. Vendors of the companies will also observe the said rules/byelaws and the terms of agreement made by the concerned local governments with the contractors for collection of Advertisement Tax and clear the outstanding recovery of Advertisement Tax of the concerned local governments through the contractors.
iv. In case of any dispute between the contractors and vendors, National and International companies may coordinate with the concerned local governments for appropriate settlement of the issue/dispute.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-21/2019, Govt. of the Punjab, LG&CD Department dated 31.12.2019 regarding “Guidelines/Instructions Regarding Issues Relating to Collection of Advertisement Tax Amongst the Contractors of Local Governments in the Punjab and Vendors of National and Multi-National Companies”

NO. SOTAX (LG) 2-21/2019
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 31st December, 2019

To

All the Administrators,
Metropolitan Corporations, Municipal Corporations,
Tehsil Councils, Municipal Committees and Town Committees
In the Punjab.

Subject: GUIDELINES/INSTRUCTIONS REGARDING ISSUES RELATING TO COLLECTION OF ADVERTISEMENT TAX AMONGST THE CONTRACTORS OF LOCAL GOVERNMENTS IN THE PUNJAB AND VENDORS OF NATIONAL. AND MULTI NATIONAL COMPANIES. #

I am directed to refer to the subject noted above and to state that instances have come to the notice of the competent authority that contractors of the Advertisement Fee of the Local Governments in the Punjab and vendors of the companies do not adhere to the collection procedure as envisaged in the Punjab Local Government (Taxation) Rules, 2016 and {Model} Advertisement bye-laws, 2017.

2. To streamline the mechanism regarding collection of Advertisement tax and to resolve the issues amongst the local governments, contractors of the local governments and vendors, a meeting of all stakeholders was held on 30.10.2019 in LG&CD Department, it was unanimously decided to issue following instructions/guidelines:
   i. That all parties concerned will adhere to the provision(s) of Punjab Local Governments (Taxation) Rules, 2016, Punjab Local Government (Auction of Collection Rights), Rules, 2016 and Advertisements Byelaws, 2017.
   ii. Contractors will strictly observe the terms and conditions of agreement made or to be made with the concerned local governments regarding collection of Advertisement Tax.
   iii. Vendors of the companies will also observe the said rules/byelaws and the terms of agreement made by the concerned local governments with the contractors for collection of Advertisement Tax and clear the outstanding recovery of Advertisement Tax of the concerned local governments through the contractors.
   iv. In case of any dispute between the contractors and vendors, National and International companies may coordinate with the concerned local governments for appropriate settlement of the issue/dispute.

SECTION OFFICER (TAX)

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Letter

NO. SOTAX (LG) 5-81/2014
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 13th March, 2019

To

All the Mayors,
Metropolitan, Municipal Corporations in Punjab
All the Chairmen,
Municipal Committees in Punjab.
All the Chief Officers,
Metropolitan, Municipal Corporations & Municipal Committees in the Punjab

Subject: UNAUTHORISED CHARGING OF PARKING / ADDA FEE. #

I am directed to refer to the subject noted above and to state that under section 81 (2)(h)(vi) and 87 (1)(k)(vi) of Punjab Local Government Act, 2013, maintenance of parking stands/general bus stand is the responsibility of Metropolitan Corporation, Lahore, Municipal Corporations and Municipal Committees in the Punjab. Under the provisions of Punjab Motor Vehicle Rules, 1969, the Local Governments are competent to charge adda fee from the transporters who avail the facility of general bus stand. It has been observed with great concern that the fee is being charged from the transporters/vehicles who do not use the facility of general bus stands which is the violation Of PLGA, 2013 as well as Motor Vehicle Rules, 1965. Moreover, such instructions were previously issued under the provisions of PLGO, 2001 vide this department’s letter of even number dated 18.05.2018.

2. It is, therefore, reiterated that local governments should charge adda/parking fee only within the premises of. general bus stand and should not charge adda fee outside the General Bus Stands otherwise it will attract suitable action against the violators as desired vide S&GAD’s letter No. SO(C-III)2-40/2018 dated 22.02.2019. It is further directed that transporters should not be allowed to load / unload passengers on roadside and to avoid accidents by ensuring safety of passengers.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-1/2017, Govt. of the Punjab, LG&CD Department dated 15.01.2018 regarding “Waiver of Taxes on Establishment of Facilitation and Booths by Telenor Pakistan”

NO. SOTAX (LG) 2-1/2017
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 15th January, 2018

To

All the Chief Officer
Local Government
In the Punjab

Subject: WAIVER OF TAXES ON ESTABLISHMENT OF FACILITATION AND BOOTHS BY TELENOR PAKISTAN. #

The undersigned is directed to state that in order to implement the scheme of interest free loans disbursement, Government of the Punjab, Agriculture Department has entered into an agreement with the Telenor Pakistan for disbursement and collection of loans to the farmers. Under the agreement, Telenor Pakistan shall distribute mobile phone sets to the loanee farmers on behalf of Government of Punjab. In order to distribute the mobile sets and impart training to the loanee farmers, Telenor Pakistan will setup 72 Facilitation Centers at Tehsil level (in the offices of assistant Directors of Agriculture Extension) and Facilitation Booths (at the franchises of Telenor Pakistan or any other place convenient for the farmers); besides using mobile Vans for the said purpose in some Tehsils.

2. You are requested not to charge advertisement tax on these Facilitation centers/ Booths as the Government has waived off the advertisement tax on these facilities.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-22/07 (P-I), Govt. of the Punjab, LG&CD Department dated 17.08.2017 regarding “Declaration of Rating Areas”

NO. SOTAX (LG) 2-22/07 (P-I)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 17th August, 2017

The Chairman
Municipal Committee
Rawalpindi Division,
Jand, Pind Dadan Khan, Khewra, Sohawa, Kallar Kahar, Bhoun, Lava,
Sargodha Division
Daud Khail Isa Khail, Qamar Mshani, kala Bagh, Piplan, Kundain, Dullah Wala,
kaloor Kot, Jandan Wala, Mankara, Hadali, Noshera,
Gujranwala Division
Ladhewala Warich, Noushera Virkan, Sukeki, Dinga,
Lahore Division
Sharaq Pur, Manawala, Kot Abdul Malik, Khanka Dogran
Faisalabad Division
Mamukanjan, Garh Mahraja, 18 Hazari,
D.G, Khan Division
Kot Chutta, Rohjan, Khangarh, Sianwan, Dera Din Panna, Shehar Sultan, Chowk azam
Bahawalpur Division
Uch Sharif,. Minchinabad, Trinda Saway Khan

2. The Chairman, District Council
   Attock, Mianwali, Sargodha, G.Wala, Hafizabad, Sialkot, M. B, Din, S. Pura, Multan, Khanewal, Jhang, Rajanpur, Layyah, B.Pur, B.Nagar, Rahim Yar Khan.
3. The Chairman, Union Council having urban characteristic
   NAME OF DISTRICT NAME OF UCS
   DIVISION
   Rawalpindi Attock Ghour Ghashti

Sargodha Mianwali Harnoi
Sargosha Miani, Phullarwan, Farooqa

G.Wala G.Wala Eminabad, Rasoolnagar, Sohdra
Hafizabad Kaleki Mandi
Sialkot Kotli Loharan, Jamke Cheema, Klasswala,
Bhoplawela, Begowala
M.B.Din Mangat, Qadarabad

Lahore      Sheikhupura         Jandiala Sher Khan

Multan      Multan          Qadirpur Ran, Makhdum Rasheed   
        Vehari          Tibba Sultan Pur, Kallah Jeem, Karam Pur 
        Khanewal        Makhdumpur

Faisalabad  Jhang           Bhag

D.G.Khan    Rajanpur        Dajal
        Layyah          Kot Sultan

B.Pur       B.Pur           Sama Satta
        B.Nagar     Mandi Sadiq Ganj
        R.Y.Khan        Ahmad Pur Lamba

Subject: DECLARATION OF RATING AREAS #

The undersigned is directed to refer to the subject cited above and to state that on promulgation of PLGA, 2013, Municipal Committees / UCs having urban characteristic have been established and are functional with effect from 02.01.2017. Provision of basic municipal services is major function of local governments. For provisions of these services funds are required to be generated und detail of taxes / fees has been provided under Third Schedule of PLGA, 2013. Section 116 of PLGA, 2013 provides:

“Rating areas and property tax.– (1) On the commencement of this Act, a rating area in which tax has been imposed under the Punjab Local Government Ordinance, 2001 (XIII of 2001), shall continue to be rating area within the meaning of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958).(2) Notwithstanding anything contained in the Punjab Urban Immovable Property Tax Act 1958 (V of 1958), a Metropolitan Corporation, Municipal Corporation, Municipal Committee or a rural Union Council with urban characteristics may determine higher rate of property tax within its area in accordance with the provisions of section 115.1[(3) Where a Metropolitan Corporation, a Municipal Corporation, or a Municipal Committee or a rural union council with urban characteristic has not determined the rate of property tax within its area, the property tax shall be levied in accordance with the provisions of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958).]

2. Rule 6 of the Punjab Local Governments (Taxation) Rules, 2016 provides that, a local government, empowered under section 116 of the Act, may levy or determine higher rate of the property tax in any rating area. For the purpose of expanding the rating area, the Mayor or Chairman shall request the Assessing Authority to carry out survey of an area for levy of property tax. The Assessing Authority, for purposes mentioned under sub-rule (2), shall ensure
   (a) The area consists of at least five hundred constructed property units; and
   (b) an integrated system of roads or streets network, water supply, sewerage
   (including open drains) and street lights either available or planned to be provide the area

The Mayor or Chairman shall notify an area under sub-rule (3), after satisfaction that the area fulfills all the requirements under these rules for levy of property tax”

4. You are, therefore, required to take action for declaring your institution as rating area for levy of UIP Tax after observing the codal formalities including the following:-
   Approach E&T Deptt.to carry out survey of an area for levy of property tax,
   Invite objections for notification of rating area, and
   Issue notification for declaring the new rating area/extension of rating area.

SECTION OFFICER (TAX)

CC:-
The Secretary, Government of the Punjab, Excise & Taxation Department with the request issue a direction all the Assessing Authorities to extent full cooperation / guidance to Local Government concerned for notifying the rating areas.
The Director General, Government of Punjab, Excise & Taxation for similar action.

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Letter No. SOTAX (LG) 2-22/07, Govt. of the Punjab, LG&CD Department dated 17.08.2017 regarding “Declaration of Rating Areas”.

NO. SOTAX (LG) 2-22/07
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT

Dated Lahore, the 17th August, 2017

To
All the Mayors / Chairmen
Tehsil/Town Municipal Administrations,
Municipal Corporations / Municipal Committees in the Punjab
All Chairmen
District Councils in the Punjab

Subject: DECLARATION OF RATING AREAS #

The undersigned is directed to refer to the subject cited above and to state that on promulgation of PLGA, 2013, new local governments have been established and are functional with effect from 02.01.2017. Provision Of basic municipal services is major function of local governments. For provisions of these services funds are required to be generated and detail of taxes / fees has been provided under Third Schedule of PLGA, 2013. Section 116 of PLGA, 2013 provides:

“Rating areas and property tax.– (1) On the commencement of this Act, a rating area in which tax has been imposed under the Punjab Local Government Ordinance, 2001 (XIII of 2001), shall continue to be rating area within the meaning of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958).
(2) Notwithstanding anything contained in the Punjab Urban Immovable Property Tax Act 1958 (V of 1958), a Metropolitan Corporation, Municipal Corporation, Municipal Committee or a rural Union Council with urban characteristics may determine higher rate of property tax within its area in accordance with the provisions of section 115.
1[(3) Where a Metropolitan Corporation, a Municipal Corporation, or a Municipal Committee or a rural union council with urban characteristic has not determined the rate of property tax within its area, the property tax shall be levied in accordance with the provisions of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958).]
(4) In matters for which no provision or no adequate provision relating to the property tax has been made under this Act, the provisions of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958) shall apply.”

2. Rule 6 of the Punjab Local Governments (Taxation) Rules, 2016 provides that, a local government, empowered under section 116 Of the Act, may levy or determine higher rate of the property tax in any rating area. for the purpose of expanding the rating area, the Mayor or Chairman shall request the Assessing Authority to carry out survey of an area for levy of property tax. The Assessing Authority, for purposes mentioned under sub-rule (2), shall ensure that:
   (a) the area consists of at least five hundred constructed property units; and
   (b) an integrated system of roads or streets network, water supply, sewerage (including open drains) and street lights either available or planned to be provide the area
   The Mayor or Chairman shall notify’ an area under sub-rule (3), after satisfaction that the area fulfills all the requirements under these rules for levy of property tax”.
3. You are therefore, requested to declare new rating area for levy of UIP Tax after observing the codal formalities.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-61/97-D, Govt. of the Punjab, LG&CD Department dated 09.03.2015 regarding “Exemption of Tax against Van/Kiosk Activity”.

NO. SOTAX (LG) 2-61/97-D
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 9th March, 2015

To

All Tehsil / Town Municipal Officer in the Punjab.

Subject: EXEMPTION OF TAX AGAINST VAN/KIOSK ACTIVITY #

The undersigned is directed to refer to the subject cited above and to state that Mobile Companies are undertaking à hectic campaign for re-verification of SIMs through Biometric Verification System as directed by the Government. In order to facilitate the general public, they are undertaking re-verification through mobile vans and kiosks so that the people do not have to rely only on Service Centers, Franchises and retailer. This activity is not meant to promote any commercial interests during the SIM re-verification campaign.

2. You are, therefore, directed not to charge advertisement fee from such vehicles which are performing re-verification of SIMs till the completion of this assignment.

(MAMMOOD AHMAD)
SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-61/97-D-III, Govt. of the Punjab, LG&CD Department dated 19.01.2015 regarding “Charging of Advertisement Fee on the Vehicles Having Logo of The Company”

NO. SOTAX (LG) 2-61/97-D-III
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 19th January, 2015

To

All District Coordination Officer,
in the Punjab
All Tehsil Municipal Officer,
Tehsil Municipal Administration,
in the Punjab

Subject: CHARGING OF ADVERTISEMENT FEE ON THE VEHICLES HAVING LOGO OF THE COMPANY. #

The undersigned is directed to refer to this Department’s letter of even number dated 12.03.2007 on the subject noted above.

It has come to the notice of the Government that local governments are charging advertisement fee on the vehicles of certain companies carrying their products and having the company logo or product promotion in the shape of product name displayed on the body of the vehicle, by treating it as a mode of advertisement. This action of the local governments is against the spirit of advertisement fee.
You are, therefore, requested to direct the concerned contractors not to charge advertisement fee on such logos or displays of the companies on their vehicles carrying their products. A compliance report in this regard may be sent to this Department, at the earliest.

(MAMMOOD AHMAD)
SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-61/97-D, Govt. of the Punjab, LG&CD Department dated 26.03.2014 regarding “Charging of Advertisement Fee on the Vehicles Having Logo of The Company”

NO. SOTAX (LG) 2-61/97-D
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 26th March, 2014

To

All District Coordination Officer,
in the Punjab
All Tehsil Municipal Officer,
Tehsil Municipal Administration,
in the Punjab

Subject: CHARGING OF ADVERTISEMENT FEE ON THE VEHICLES HAVING LOGO OF THE COMPANY. #

Undersigned is directed to refer to the subject cited above and to state that it has come to the notice of the Government that local governments are charging advertisement fee on the vehicles owned by certain companies carrying their products and having the company logo or product promotion in the shape of product name displayed on the body of the vehicle by treating it as a mode of advertisement despite issuance of repeated instruction by the departments. This action of the local governments is against the spirit of advertisement fee.

2. You are, therefore requested to direct the concerned contractors not to charge advertisement fee on such logos or displays of the companies on their owned vehicles carrying their products. A compliance report in this regard may be sent to this Department, at the earliest.

(MAHMOOD AHMAD)
SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-22/2007(P), Govt. of the Punjab, LG&CD Department dated 30.11.2011 regarding “Expanding Base of Property Tax”.

NO. SOTAX (LG) 2-22/2007(P)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 30th November, 2011

To
All Tehsil / Town Municipals Officers
Tehsil / Town Municipal Admınistrations
in the Punjab

Subject: EXPANDING BASE OF PROPERTY TAX #

The undersigned is directed to refer to the subject and to enclose herewith Excise and Taxation Department’s Notification No. SO.TAX(E&T)3-38/91(P-I), dated 13.10.2001, prescribing the valuation tables for estimating the Gross Annual Rent of a building / land to assess Property Tax. Also enclosed is a revised template notification of UIPT for the purpose of levy of UIPT by the TMAS in future.

2. You are directed to follow the above mentioned Notification of Excise and Taxation Department for future assessment of UIPT and to use the revised template notification for any future levy.

(KAUKAB NAZIR)
Deputy Secretary (E&T)

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Letter No. SOTAX (LG) 2-46/2008(PI), Govt. of the Punjab, LG&CD Department dated 20.02.2011 regarding “Collection of Tax on Transfer of Immovable Property Tax by TMAs”.

NO. SOTAX (LG) 2-46/2008(PI)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 20th February, 2011

To
Senior Member,
Board of Revenue,
Punjab, Lahore.

Subject: COLLECTION OF TAX ON TRANSFER OF IMMOVABLE PROPERTY TAX BY TMAs. #

The undersigned is directed to refer to the subject and to state that all TMAS in the Punjab were directed vide this departments letter dated 30.06.2010 to collect TTIP through departmental mode. Since then, TTTIP being collected departmentally by all TMAs in the Punjab. AlI TMAs in the Punjab have further been directed vide this Department’s letter dated 20.02.2012 that daily recovery of the tax shall be registered by the TMA staff and recovery of TTIP shall be reconciled with the revenue staff (copy enclosed).

2. You are requested to issue instructions to your field formations for extending cooperation to the TMA staff regarding reconciliation of the TTTP in order to make the recovery/ collection of TTIP more effective and to avoid chances of misappropriation/ embezzlement.

(FATIMA TAHIR)
Section Officer (Tax)

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Letter Govt. of the Punjab, LG&CD Department dated 30.06.2010 regarding “Collecting Tax on Transfer of Immovable Property through Departmental Mode Instead of Auctioning the Collection Rights, 2010-11”

NO. SOTAX (LG) 2-46/08(P)
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 30th June, 2010

To
All Administrators,
Tehsil/Town Municipal Administrations,
in the Punjab
All Tehsil/Town Municipal Officers,
Tehsil/Town Municipal Administrations,
in the Punjab

Subject: COLLECTING TAX ON TRANSFER OF IMMOVABLE PROPERTY THROUGH DEPARTMENTAL MODE INSTEAD OF AUCTIONING THE COLLECTION RIGHTS, 2010-11. #

In pursuance of the provisions of rule 3 of the Punjab Local Government(Auctioning of Collection Rights) Rules, 2003 that prohibits award of collection rights to a local government in respect of contract for collection of an income including water rate, building fee, commercialization charges, sanitation fee, license fee and lighting rate or arrears of the income, demand for which can be raised against a specific person and its arrears can be carried forward, communicated earlier vide letter No.SO.Tax(LG)2-253/97, dated 6-11-2007, collection of Tax on Transfer of Immoveable Property shall henceforth be recovered exclusively through the departmental mode. Under no circumstances whatsoever, can any local government resort to auctioning of collection rights in respect of the subject tax.

2. All Administrators of District Governments/TMAs shall ensure strict compliance with the above instructions which have been issued after approval by the Chief Minister. Necessary measures should be taken at the local council level to ensure that the collection Of TTIP is effected in an efficient and transparent manner. Special measures should also be put into place to prevent embezzlement/ misappropriation of the collected amount on the part of the collecting staff.
3. Commissioners and DCOs are requested to review the collection exercise on regular basis so to ensure that the projected targets are achieved to the financial advantage of the local councils.
4. Fortnightly figures in respect of the collection so effected should be sent to the Department on regular basis.
5. This must be assigned on Top Priority.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-42/2008, Govt. of the Punjab, LG&CD Department dated 11.05.2009 regarding “Exemption of Municipal, Taxes on ‘Rickshaw Tongas and Carts’”.

NO. SOTAX (LG) 2-42/2008
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 11th May, 2009

To

All Tehsil/Town Municipal Officers,
Tehsil/Town Municipal Administrations in the Punjab

Subject: EXEMPTION OF MUNICIPAL, TAXES ON “RICKSHAW TONGAS AND CARTS” #

I am directed to refer to this Department’s letter of even number, dated 27-03-2009, on the subject noted above,

2. References are being received from TMAs with the request to clarify whether fee exempted on rickshaws is for annual license fee or parking fee.
3. This is to clarify that parking fee may be levied by TMAs or Rickshaws and on other vehicles as per rules; the exemption is only for annual license fee for Rickshaws.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-45/2008, Govt. of the Punjab, LG&CD Department dated 19.09.2008 regarding “Abolition of Tehbazari Fee”.

NO. SOTAX (LG) 2-45/2008
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 19th September, 2008

To

All Tehsil / Town Municipal Officer in the Punjab

Subject: ABOLITION OF TEHBAZARI FEE #

I am directed to refer eth the subject noted above and to state that tehbazari fee is not covered under the provisions of Punjab Local Government Ordinance, 2001. It has therefore been decided to stop collection / charging of tehbazari fee forthwith.

2. Further necessary action may be taken accordingly.

SECTION OFFICER (TAX)

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Letter No. SOTAX (LG) 2-61/97-D, Govt. of the Punjab, LG&CD Department dated 12.03.2007 regarding “Charging of Advertisement Fee on The Vehicles Having Logo of the Company”.

NO. SOTAX (LG) 2-61/97-D
GOVERNMENT OF THE PUNJAB
LOCAL GOVT. & COMMUNITY DEVELOPMENT DEPARTMENT
Dated Lahore, the 12th March, 2007

To

All District Coordination Officer,
in the Punjab
All Tehsil Municipal Officer,
Tehsil Municipal Administration,
in the Punjab

Subject: CHARGING OF ADVERTISEMENT FEE ON THE VEHCLES HAVING LOGO OF THE COMPANY. #

Please refer to subject noted above.

2. It has come to the notice of the Government that Local Governments are charging advertisement fee on the vehicles owned by certain companies carrying their products and having the company logo or product promotion in the shape of product name displayed on the body of the vehicle, by treating it as a mode of advertisement. This action of the Local Governments is against the spirit of advertisement fee.
3. You are therefore, requested to direct the concerned contractors not to charge advertisement fee on such logos or displays of the companies on their owned vehicles carrying their products. A compliance report in this regard may be sent to this Department, at the earliest.

SECTION OFFICER (TAX)

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Letter No. SO.TAX (LG) 1-18/01-T.T.Singh, Govt. of the Punjab, LG&RD Department dated 13.11.2004 regarding “Levy of Illegal Tax in the Name of Road Service Charges by TMAs”.

No. SO.TAX (LG) 1-18/01-T.T.Singh
GOVERNMENT OF THE PUNJAB
LOCAL GOVERNMENT & RURAL DEVELOPMENT DEPARTMENT

Dated Lahore, the 13th November, 2004

Subject: LEVY OF ILLEGAL TAX IN THE NAME OF ROAD SERVICE CHARGES BY TMAS. #

Kindly refer to subject noted above.

2. Under Second Schedule Part-I, District Governments are competent to levy toll tax on roads, bridges, ferries maintained by the District Governments. It has been observed with great concern that TMAs are charging toll tax in the name of road user charges/service charges which is not covered under Second Schedule of PLGO, 2001. Moreover, this tax is being levied without vetting and gazette notification by the department which is a violation of the provisions of Section 116 of PLGO, 2001.
3. You are, therefore, directed to stop collection of such tax forthwith and send a compliance report.

SECTION OFFICER (TAX)