Punjab Introduces New Local Government Formula to Tackle Land Mafia and Expand Tax Net

Punjab:In a significant move to curb the influence of land mafia and streamline the local governance system, the Punjab government has unveiled its new local government formula under the Punjab Local Government (Amendment) Act 2024. The proposed changes, which were presented in the Punjab Assembly, aim to strengthen the tax system and ensure better development of rural and urban areas.

**Key Highlights of the New Law**
The new law focuses on extending the tax net to housing schemes in rural areas, which were previously outside the tax scope. These schemes, often developed by land mafias, were previously not part of the taxation system. Under the new provisions, these housing schemes will now be taxed under the *Urban Immovable Property Tax Act 1958*.

The core objective of this bill is to align it with the Punjab Finance Act 2024 and expand the scope of taxation in both urban and rural areas. The tax will now apply to all immovable properties within urban limits, including residential, commercial, and industrial properties.

**Tax Assessment and Collection**
Under the new framework, the value of properties will be assessed based on established criteria and standards. The tax collection will be handled by a designated agency appointed by the Punjab government, ensuring a streamlined and efficient process.

The funds collected through the property tax will be transferred to local government bodies, empowering them to use these funds for the development and improvement of their respective regions. The new approach aims to ensure better resource allocation and a more effective development plan for local areas.

**Implications for Land Mafia and Local Governance**
The new bill targets land mafia that has historically used loopholes in the system to avoid taxation in rural areas. With the implementation of this law, the Punjab government is hoping to curb the unlawful activities of land developers and ensure that funds generated through taxes are used effectively for local development.

This reform is expected to lead to a more equitable distribution of resources, boosting local infrastructure, and improving governance across Punjab’s urban and rural landscapes.