LDA’s Global Village Sealed Over Property Tax Issue

The Punjab Excise and Taxation Department (E&T) sealed the Lahore Development Authority’s (LDA) landmark project, Global Village (formerly known as Arena), due to nonpayment of property tax. However, the building was later de-sealed following intervention from the top management of both organizations.

This action by the excise department occurred just a day after the LDA team sealed the regional office of the Excise Department in Faisal Town as part of its ongoing campaign against commercial fee defaulters, which took place three days earlier.

The LDA’s operation, led by the relevant director, resulted in sealing several properties in Faisal Town and Garden Town, including the Excise and Taxation Department office. Excise Director General Faisal Fareed told The News that he was unaware of such an operation and denied any conflict between the two government departments. He mentioned that he didn’t know the Global Village (Arena) belonged to LDA and suggested the sealing might have been carried out by lower-level staff without higher approval. He added that when LDA sealed the excise office, he contacted the LDA DG, who was also unaware of the action taken by his team.

Regarding using the residential property for commercial purposes, Fareed stated that the Excise Department provides services to the general public, which does not fall under ‘Commercial Activities’. He noted that many private residential buildings have been converted into offices for various government departments in Lahore and other cities, which is not a new practice for the Excise Department.

LDA DG Tahir Farooq confirmed to The News that the Excise Department had sealed Global Village and that the LDA subsequently paid Rs2.5 million in property tax to have the building de-sealed. He clarified that the property tax should be paid by the property owner, from whom the Excise Department had rented the building, and assured that the recovery process would be followed.