Group MembersBushra Aziz Sahar Yousuf Sadia Mehrin Awais Shah Raheel Ahmad Zulqarnain Haider

“Excise & Taxation Department”

A special gratitude, we give to our facilitator and teacher, Mr. Saleem Khan Balouch.

A special thanks goes to Mr. Akthar Munir who helped us and provide us sufficient information.

Thank You

Excise tax refers to an indirect type of taxation imposed on the manufacture, sale or use of certain types of goods and products

For Example:Excise taxes are commonly included in theprice of a product, such as cigarettes oralcohol, as well as in the price of an activity,often gambling

Definition of Excise tax

Provides services for collection of various taxes and duties and suggests ways and means for additional resource mobilization in the Province.

 Department aims to◦ Mobilize fiscal resources ◦ Promote automation and outsourcing of functions

& services◦ Create tax-paying culture◦ Transform HR into professionally sound, motivated

team,  prove service delivery

Introduction of Punjab Excise and Taxation Department

"Facilitation of Tax Payers“

Vission:

“Maximizing fiscal space by better tax management and judicious use of resources.”

Mission:

ADMINISTRATIVE DEPARTMENT (SECRETARIAT)

DIRECTORATE GENERAL

Collection of provincial property tax Motor vehicle registration Collection of entertainment tax Different levies of excise. Handling issues related to vehicle documentation Issuing clearance certificates and updating

documentation with regards to property units. The department is also tasked with the enforcement of

Hadd ordinance 1979 which deals with the prohibition and licensing of liquors, intoxicants and narcotics.

Functions of Department

1. Excise Wing

2. Taxation Wing

Wings of Excise & Taxation Department

Detection of Excise Crime Collection of Excise Duty on

◦ Methylated Spirit◦ Rectified Spirit◦ Liquor

Administration of following Licenses◦ Distillery◦ Liquor◦ Manufacturing of Homeopathic Medicines◦ Chemical Work◦ Denatured Spirit◦ Opium Powder◦ Vinegar

FUNCTIONS OF EXCISE WING

Following taxes/ duties are now being collected and administrated by the department.◦ Property tax◦ Entertainment Duty◦ Motor Vehicle Tax◦ Excise Duty◦ Professional Tax◦ COTTON FEE◦ EDUCATION CESS ON CLUB◦ Farm House Tax◦ Tax on Luxury Houses

FUNCTIONS OF TAXATION WING

Under the provisions of the Act, the property tax is levied on the annual value of buildings and land located in the rating area. It is levied at the rate of 5% of annual value at which the property may be let out from year to year basis.

Property tax

According to the Punjab Entertainments Duty Act 1958, entertainment includes any exhibition, performance, amusement or horse-racing to which persons are admitted at payment

Entertainment Duty is levied as follows:◦ 65% of the Admission Charged on any Exhibition,

Performance, Amusement, Game or Sport.◦ 20% of the payment for admission to stage Dramas

& Theatres.◦ 200% of the payment for admission to Horse Racing.

Entertainment Duty

TYPE OF TAXES / FEE◦ New Registration fee ◦ Rates of Transfer fee◦ Rates of Token Tax Motor Car ◦ Rates of other Post Transactions◦ Rates of Security Featured Items◦ Rates of Withholding Tax - (One Time at

Registration on Local Cars)◦ Rates of Motor Tax on Commercial Vehicles◦ Rates of Income Tax◦ Rebate in Token Tax

Motor Vehicle Tax

New Registration Fee

Rate of transfer fee

The following taxes are collected under the head of Excise Fee: 

Still Head Duty: It is payable by licensee before the issue of any consignment from a Distillery unless the issue is in bond

◦ @ Rs.12/- per liter on Beer◦ @ Rs.600/- per LP Gallon on Pakistan Made

Foreign Liquor (PMFL)

Excise Duty

Vend Fee: It is payable on the sale of liquor/beer/wine by Vender◦ @ Rs.1410/- per Bulk Gallon or Six Quart Size

Bottles on Pakistan Made Foreign Liquor (PMFL)◦ @ Rs.70/- per litre on Beer◦ @ Rs.420/- per Gallon on Wine

Duty On The Manufacture Of Rectified Spirit: It is a duty on a Distillery payable by

consignee in advance◦ @ Rs. 75.00/- per LP Gallon on Rectified Spirit.◦ @ Rs.1.75/- per LP Gallon Rectified Spirit for

Industrial use. 

Export Duty ◦ (It is a duty on importer collected by exporter in

advance)◦ PMFL:- Rs.40 per Bulk Gallon◦ Beer:- Rs.1/- per Liter Sale Of Opium◦ @ Rs.17, 000/- per Kg on Excise Opium.◦ @ Rs. 20,000/- per Kg on Medicinal Opium

Power at the ◦ Time of sale to the Licensee DD-5. ◦ @ Rs. 8/- per tablet at the time of sale of Opium

Tablets ◦ To addicts. 

This tax is levied and collected on/from the persons or class of persons engaged in a profession, trade, calling or employment in the Province of the Punjab and it shall come into force on and from the first day of July under section 1 (3) of the Punjab Finance Act, 1977.

Professional Tax

Companies registered under Companies Ordinance, 1984 Factories as defined under the Factories Act,1932 Commercial Establishments other than the above said

two categories Importers and Exporters Government Contractors Government Builders Government Property Developers Service Providers Property Dealers Motor Car Dealers Motor Cycle Dealer Employees,Doctors,Hakeems or Ayuervedics, Auditing

Firms

Modes of Professional Tax

Cotton fee was levied by Government of Punjab vide the Cotton Control Ordinance/Rules 1966 and its recovery was earlier assigned to the Agriculture Department. However, the levy was assigned to Excise and Taxation Department in 1973. The rates of fee since its levy continue to change and at present it is charged @ 0.10 paisa per kg

COTTON FEE

Sadia Mehrin

Government of the Punjab, vide Finance Act 2011, levied Education Cess on elite clubs whose initial membership fee for any category of members is Rs 200,000 or more

EDUCATION CESS ON CLUB

Farm House Tax was levied by Government of the Punjab, vide Finance Act 2011, on farm houses lying outside existing rating areas of property tax and whose total area is four kanals, including the areas under farming, minimum covered area of 5000 square feet, and constructed after the year 1980

Farm House Tax

Luxury house Tax has been imposed on residential houses situated in the notified rating areas under the Punjab Urban Immovable Property Tax Act, 1958 and Cantonment areas defined under the Cantonment Act, 1924.

The tax has to be paid only one time in lump sum on or in four equal quarterly installments with first installment.

Tax on Luxury Houses

Diversification of platform for value added services like branchless banking services to tax payers.

Online filing of different applications and their processing Virtual availability of various services to tax payers 24/ 7. Online availability of property related data with tax

mapping and associated services. Provision of 5 Lac Number Plates/ month at door steps of

Motor Owners through courier.

 

Future Plans

Provision to make Number Plates un-detachable. Tax collection on National Bank and through branchless

banking. Compulsory registration mechanism of vehicles before

delivery. Centralization of Data Bases. One time exemption of penalty for unregistered vehicles and

transfer transaction on the basis of old TO forms/ transfer deeds.

One litter petrol/ day for all Excise & Taxation Inspectors. 1000 Motor Cycles for Excise & Taxation Staff.

Future Plans

The exercise department is now having online system They have collected almost 75% of the total tax of

multan region Recovery system is their strength They have collected 15 Cror from Mortars Vehicles

taxes

Strengths

Their employment dishonesty Still manual working at some extent Low motivation level Poor Infrastructure

Weaknesses

Proper training to employee Full computerized system Create more awarness about tax amoung people’s Proper complain sysetm (who are not paying the taxes)

Opportunities

Security system Corruption Processions or strikes

Threats

Proper trainings to employees Security system like CCTV cameras, walk through

gates, metal detector Improve their infrastrructure Parking place should be spaceious Proper sitting area or waiting room Updated computerized system Proper check and balance on employees.

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