Department of Excise suggest 25 percent increase in Professional Tax

Department of Excise & Taxation of Punjab has decided to increase the Professional Taxes, the Excise Department will submit the summary to Punjab Government in this regard. The tax will be applicable to Engineers, Doctors, Lawyers, Construction Engineers, Jewelers and other persons. The expected increase will be from 10 to 25 percent.

The Excise Department is planning to include 13000 such persons who are still out of Tax net including Lawyers and persons who are connected with other professions. Last time, the increase of Professional Taxes was witnessed in 1999.

The Government of Punjab levied Professional Tax for the first time on every profession in 1964, when every professional was required to submit 30 rupees as professional tax.

The Excise Department has stated that the lack of staff and data resulted in loss of revenue. Currently following professions are included in the Tax net:

Property Dealers, Motorcycle Dealers, Motorcar Dealers, Employees of any organization, Doctors, Pharmacists, Homeopathic, Audit Firm, Engineers, Tax Consultants, Cable Operators, Departmental Stores, Money Exchangers, Architects, Stock Exchange Dealers, Organizations that Recruit Employees, Transporters, Printing Press, Pesticide Dealers, Contractors, Electronic Goods Stores, Tobacco Dealers, Companies that are registered under Companies Ordinance 1984, Factories that are registered under Factories Act 1932 and other Commercial Organizations, Importers, Exporters.

The Excise Department has set a target to collect Professional Tax of 45 million rupees, while about Excise Department has acquired more than 29 million.