Local Govt Tax , Fees , Rates , Tolls Rules

Chapter – XX

Local Government Taxes, Fees, Rates and Tolls

99.       Authority of a local government to levy taxes etc.– (1) A local government may, through a notification published in the official Gazette, levy all or any of the taxes, fees, rates, tolls, rent and other charges given in the Fifth Schedule.

(2)       Every resident shall, where applicable, pay toll, tax, fee, rates or other charges imposed by the local government, allow officers and servants of the local government reasonable access to his property in relation to the performance of their duties, and comply with bye-laws and instructions of the local government applicable to him.

100.     Procedure for imposition, revision or abolishment of a local tax, fee, etc.– (1) A Head may make proposal with respect to:

(a)        levy of a new tax, fee, rate, rent, toll or other            charges under the Act; or

(b)       increase or reduction in the incidence of a tax, fee, rate, rent, toll or other charge or otherwise revision of a tax, fee, toll or other charges which is for the time being in force under the Act; or

(c)        suspension or abolishment of a tax, fee, rate, rent, toll or other charges which is for the time being in force under the Act; or

(d)       exemption of any person or class of persons, or property or goods or class of property or goods, or services or other things from the levy of a tax, fee, rate, rent, toll or other charges which is for the time being in force under the Act.

(2)       Every proposal for levy of a tax, fee, rate, rent, toll or other charges under subsection (1) shall, amongst others, mention:

(a)        the class of persons, or description of property or goods, or services or other things on which the proposed tax, fee, rate, rent, toll or other charges shall apply;

(b)       the method of assessment of the proposed tax, fee, rate, rent, toll or other charges; and

(c)        the incidence at which the tax, fee, rate, rent, toll or other charge is to be levied.

(3)       As soon as may be after making of a proposal under subsection (1), the Head shall, through a public notice, invite suggestions and objections on the proposal mentioning therein, amongst others, the date and time by which the suggestions and objections shall be submitted.

(4)       The last date of submission of objections under subsection (3) shall be fixed in such manner as to allow not less than thirty days commencing from the date of publication of the notice.

(5)       Any resident of the relevant local area or a person affected by the proposal referred to in subsection (1), may submit his suggestions or objections or both in writing to the Chief Officer by the date and time appointed under subsection (3).

(6)       After having considered all suggestions and, as the case may be, objections received under subsection (5), the Head may:

(a)        accept suggestions and objections inasmuch as he deems appropriate and present a revised proposal before the Council in a public meeting; or

(b)       reject the suggestions and objections and present his original proposal before the Council in a public meeting.

(7)       The Council may with a simple majority of votes of existing members, approve the proposal with or without revision.

(8)        The local government shall, through notification in the official Gazette, publish approved tax, fee, rate, rent, toll or other charge, or the suspension or abolishment or increase or decrease of the incidence or any other revision of such tax, fee, rate, rent, toll or other charge.

(9)        Notwithstanding anything contained in the previous local government laws, any tax, cess, fee, rate, rent, toll, charge or surcharge, levied and recovered without fulfilling the requisite procedure or authority, up to the coming into force of the Act, shall be deemed to have been validly levied and recovered under the Act; provided that the tax, cess, fee, rate, rent, toll, charge or surcharge is levied prior to coming into force of the Act.

(10)      Subsection (9) shall apply retrospectively to all legal proceeding before any legal forum.

101.     Date on which local taxes, fee, etc. become effective.– Tax, fee, rate, rent, toll or other charge approved or the suspension or abolishment or increase or decrease of the incidence or any other revision of such tax, fee, rate, rent, toll or other charge under the Act, shall become effective from the commencement of next financial year.

102.     Rating areas and property tax.– (1) On commencement of this Act, a rating area in which tax has been imposed or saved under the Punjab Local Government Act, 2019 (XIII of 2019) shall continue to be the rating area within the meaning of the Punjab Immovable Property Tax Act, 1958 (V of 1958) and under this Act until revised.

(2)       Notwithstanding anything contained in Act V of 1958, a local government to which urban immovable property tax relates to, may determine the rate of this tax in accordance with section 100 of this Act.

(3)       If no determination under subsection (2) is made, the rate of urban immovable property tax shall be determined under Act V of 1958.

103.     Unfair local taxes etc.– (1) If at any time, on a representation by the resident of that local area made to it for this purpose or otherwise, it appears to the  Secretary that the incidence of a tax, fee, rate, rent, toll or other charge imposed under the Act is unfair or excessive, the  Secretary may, after affording opportunity of hearing, through an order require the concerned local government to take, within a specified period, measures to remove the objection.

(2)       If a local government fails to comply with the order of the Secretary under subsection (1) to their satisfaction within the specified period, the Secretary, may suspend the levy of the objectionable tax, fee, rate, rent, toll or other charge or of such part thereof until the objection is removed by the concerned local government.

(3)       Any resident of the relevant local area or a person or entity affected by the imposition or levy of a tax, fee, rate, rent, toll or other charges may make a representation to the Secretary under subsection (1).

104.     Duty to furnish information on liability to local tax, fee etc.– Every resident of the respective local area and every other person subject to any tax, fee, rate, rent, toll or other charges imposed under this Act, shall on demand of the Chief Officer or an officer authorized by him in this behalf, furnish such information, produce such record or accounts, or present such goods, vehicles, animals or other things which are liable to the tax, fee, rate, rent, toll, or other charges, as may be necessary for the purpose of determining their liability to pay the tax, fee, rate, rent, toll, or other charges as the case may be or the assessment thereof.

105.     Power of entry for valuation of local taxes etc.– The Chief Officer or an officer authorized by him in this behalf, may after giving due notice to the occupier, or, if there is no occupier, to the owner of a building or premises, at any time between sunrise and sunset, enter upon any building or premises to assess the liability of that building or premises to any tax or inspecting any goods, vehicles, animals or other things therein liable to any tax, fee, rate, rent, toll or other charges under this Act.

106.     Presentation of bill for local taxes and rates etc.– (1) When any sums become due for payment on account of any tax, fee, rate, rent, toll or other charges under this Act, the Chief Officer or any other officer authorized by him shall cause to be presented to any person liable for payment thereof a bill for the sum claimed as due.

(2)       Every such bill shall specify the period for which and the property, occupation, services or things in respect of which the sum is claimed and shall also give notice of the time by which the sums shall be paid and liability incurred in default of payment and the time within which an objection may be preferred against such claim under this Act.

107.     Notice of demand to be issued on non-payment of bill.– (1) If the sum for which a bill has been presented under section 106 of this Act is not paid within the time specified therein, the Chief Officer or any other officer authorized by him may cause to be served upon the person to whom such bill has been presented a notice of demand in the specified form.

(2)       For every such notice of demand, a fee of such amount not exceeding fifteen per centum of the sums due shall be payable by the said person, and the said amount shall be included in the cost of recovery.

108.     Payment of local tax etc. and consequences of default.– (1) A person upon whom a bill or notice of demand has been served under section 106 or 107 of this Act, may:

(a)        pay the sum demanded in the bill or notice of demand to the local government concerned as directed in the bill or notice; or

(b)       within fifteen days from the service of such bill or notice of demand make an objection in writing to the Chief Officer and show cause to his satisfaction as to why he should not pay the sum indicated in the notice; or

(c)        prefer an appeal in accordance with the provisions of section 110 of this Act against the determination of a Chief Officer under clause (b) above.

(2)       Where such person does not pay the sum demanded, or show cause or prefer an appeal under subsection (1), the Chief Officer may refer a case for the recovery of such sums as an arrear of land revenue to the respective Collector.

(3)        Every person liable to pay tax, fee, rates, rents or other charges imposed by the local government shall be personally liable to pay such tax and fee etc. directly to the local government or its authorized person as per the determined amount.

Provided that any person liable to pay tax, fee etc. shall not enter into a contract with a third party for any lesser fixed fee arrangement, which shall be strictly prohibited and any contravention thereof shall be an offence under this Act. 

109.     Investigation of objections by Chief Officer.– (1) The Chief Officer shall cause all objections made before him under section 108 of this Act to be entered in a register to be maintained for this purpose and shall give a notice in writing to the objector of a time and place at which his objection shall be investigated.

(2)       At the time and place fixed under subsection (1), the Chief Officer or any other officer authorized by him for this purpose, shall hear the objection, in the presence of the objector or his authorized agent if he appears or may, for reasonable cause, adjourn the investigation.

(3)       When the objection has been determined, the order passed on such objection shall be recorded in the register mentioned in subsection (1) and if necessary, the bill or demand notice shall be amended or withdrawn in accordance with the result of investigation.

(4)       The Chief Officer shall cause to be immediately delivered to the objector, free of any charge, a certified copy of the order made by him under subsection (3).

110.     Appeal against the order of Chief Officer.– (1) A person aggrieved from the order of a Chief Officer passed under section 109 of the Act, may, within thirty days of the receipt of such order, file an appeal before Head of the local government which shall be decided within thirty days.

(2)       No appeal shall be entertained by Head of the local government unless it is made in writing and is accompanied by an order of the Chief Officer appealed against.

111.     Liability for local tax etc. to be called in question only under this Act.– No assessment of a tax, fee, rate, rent, toll or other charges under this Act or the liability of a person for such tax, fee, rate, rent or toll shall be called in question except in accordance with the provisions of this Act.

112.     Payments to be made in authorized banks against receipts.– (1) All sums on account of a tax, fee, rate, rent and any other charges under this Act shall be paid to the local government through an authorized bank either manually or electronically unless permission for any other method of payment is obtained from the Government.

(2)       For all sums paid to a local government on account of any tax, fee, rate, rent, toll or other charge under this Act, a receipt, stating among other things the amount and the tax, fee, rate, toll or other charges on account of which it has been paid, shall be tendered by the person receiving such payment on behalf of the local government.

113.     Writing off of irrecoverable taxes etc.– (1) At the close of each financial year, every Chief Officer shall prepare a statement of all such sums due to the respective local government on account of any tax, fee, rate, toll or other charges which, in his opinion, are irrecoverable.

(2)       The Chief Officer shall present the statement prepared under subsection (1) to the Council and after due consideration, the Council may order that such sums or any part thereof shall be struck off the relevant books kept under section 115 of this Act.

(3)       The Chief Officer shall cause an authenticated copy of the statement prepared under subsection (1) along with an authenticated copy of the statement of struck off dues to be displayed at a conspicuous place in the office of the local government for public inspection and shall, on application of any person, also cause to be furnished to him a copy thereof or any extract thereof on payment of such reasonable fee as may, from time to time, be fixed by the Council.

114.     Tax, fee etc. not to become invalid for a defect in form.– (1) No assessment of value, or charge or demand of any tax, fee, rate, rent, toll or other levy made under this Act, shall be called in question or in any way be effected by reason of:-

(a)        any mistake in the name, residence, place of business or occupation of any person liable to pay such tax, fee, rate, rent, toll or other charges; or

(b)       any mistake in the description of any property, service or thing liable to such tax, fee, rate, toll or other charges; or

(c)        any mistake in the amount of assessment of such tax, fee, rate, rent, toll or other charges; or

(d)       any clerical error; or

(e)        any other defect of form.

(2)       It shall suffice for any assessment of value, or levy or demand of a tax, fee, rate, rent, toll or other charges that the person, property, service or any other thing subject thereof is so described as to be sufficiently identifiable.

115.     Records pertaining to valuation, assessment and collection of local tax, fee etc.– (1) Every Chief Officer shall prepare and maintain records pertaining to valuation, assessment and collection of all taxes, fees, rates, rents, tolls and other charges levied by the local government in the prescribed manner.

(2)       All records prepared and maintained by the Chief Officer under subsection (1) above shall be authenticated by the respective Head of the local government.

(3)       The Chief Officer shall cause to be displayed at a conspicuous place in the office of the local government a copy of all records authenticated under subsection (2) above for public inspection and shall, on an application by any person, also cause to be furnished to him a copy thereof or any extract thereof on payment of such reasonable fee as may, from time to time, be fixed by the Council.

116.  Appointment of an agency or officer for collection of local tax, fee etc.– (1) In the interest of economy, efficiency and effectiveness, the Chief Minister may by a notification in the official Gazette, direct that an agency or an officer of the Government engaged in collection of its tax, fee, rate, rent, toll, or other charges shall also collect one or more taxes, fees, rates, tolls, rents or other charges on the behalf of one or more local governments or constitute a separate agency for this purpose and provisions relating to the authority of the Chief Officer in relation to collection of local tax, fee, rate, rent, toll or other charges under this Act shall mutatis mutandis apply on that agency or officer.

(2)       The Agency or officer referred to in subsection (1) shall, to the extent of collection of a local tax, fee, rate, rent, toll or other charge be responsible to the respective local government.

Source: Punjab Local Government Act 2022, Chapter XVII, Sections 99 to 116