Punjab Approves Bill to Reward Reporting of Property Tax Evasion

The Punjab Assembly’s Standing Committee on Excise has given its nod to an important amendment in the Punjab Urban Immovable Property Tax Act, 1958, paving the way for a reward-based system to combat property tax evasion.

The newly proposed amendments introduce a “whistle-blower” mechanism that incentivizes both the general public and excise officials to report tax evasion cases with credible information. Under the revised law, anyone providing actionable information that leads to the discovery of tax fraud will be entitled to a cash reward.

Public and Officials Eligible for Rewards

According to the proposed amendment, Clause 15-A of the Act allows the Commissioner, on the Collector’s recommendation, to approve monetary rewards for whistleblowers. These rewards will come from the penalty amount recovered in tax evasion cases. The purpose of this clause is to encourage citizen involvement in improving transparency and accountability in Punjab’s property tax system.

The clause also outlines that:

• The reward will only be granted if the information is new, credible, and not already known to authorities or found in public records.
• The government will establish a formal process for approving and distributing rewards.
• If the tip-off leads to no recovery, the reward claim will be rejected.

Incentives for Excise Officials

In parallel, Clause 15-B introduces a similar reward mechanism for officers and staff of the Excise, Taxation and Narcotics Control Department who demonstrate exceptional performance in uncovering tax evasion. These officials will be eligible for incentives after the actual recovery of taxes in such cases.

This clause also mandates:

• The Collector must determine responsibility in cases of evasion.
• The reward can be allocated based on individual performance or used for the collective welfare of department staff.
• Detailed procedures and reward-sharing formulas will be issued by the government.

A Move to Strengthen Tax Enforcement

The amendment aims to tighten loopholes in the property tax collection system and address persistent issues of under-reporting and fraud. By involving both citizens and government employees, the provincial administration hopes to boost revenue collection and enhance public trust in tax enforcement.

With the committee’s approval, the bill is expected to be passed in the Punjab Assembly soon, marking a significant step toward reforming the province’s urban tax structure.