2012年-世界发展银行全球_Property_Tax_Decentralisation_Program_Punjab_Pakistan___Business_Blueprint_95页_2mb

Summary of the Property Tax Decentralisation Program Punjab, Pakistan

Core Content

The Property Tax Decentralisation Program in Punjab, Pakistan, is a strategic initiative aimed at modernising and restructuring the Excise and Taxation Department (E&T) to improve property tax collection and administration. This program is based on a World Bank-assisted business blueprint that outlines the necessary changes in governance, operations, human resources, policy, and technology.

Main Objectives

• To increase the tax base and improve collection efficiency.
• To create a stand-alone Property Tax Division within the E&T Department.
• To enhance customer services and organisational performance.
• To introduce modern ICT systems to support efficient property tax administration.
• To establish clear governance and fiscal structures that promote local accountability and revenue generation.

Key Areas of Reform

The blueprint identifies seven major areas for reform:

1. Governance and Fiscal Issues
2. Operational and Organisational Change
3. Human Resources, Organisation and Management
4. Property Tax Policy
5. Information Technology
6. Core Administration
7. Customer Services

Each area is addressed with specific recommendations to ensure the long-term success of the program.

Governance and Fiscal Issues

The current dual subordination of the E&T Department creates confusion in management responsibilities. The blueprint proposes three alternative models for fiscal decentralisation:

• Centralised Model: All property tax functions are retained at the provincial level.
• Decentralised Model (Model 1): Cities/TMAs are responsible for rate setting and administration, while the E&T Department handles policy, regulation, and audit.
• Decentralised Model (Model 2): Cities/TMAs are responsible for rate setting and reliefs, with the E&T Department managing the rest and being accountable to local authorities.

A combined model is also suggested, where cities handle billing, collection, and enforcement, while TMAs enter into service level agreements with the provincial government for other functions.

The blueprint highlights the need for structural reform in intergovernmental fiscal relations, as the current system lacks proper incentives, local accountability, and consideration of local capacity.

Operational and Organisational Change

The current devolution of UIPT to local governments has not been effective. The blueprint proposes a new management structure that includes:

• Policy development
• Training and development
• ICT support
• Separation of duties between valuation, billing/collection, enforcement, and customer services.

This structure is intended to introduce internal checks, separation of duties, and internal control to improve efficiency and reduce corruption.

Human Resources, Organisation and Management

The E&T Department lacks formal training mechanisms and has an aging workforce. The blueprint recommends:

• Developing a human resource plan to address workforce challenges.
• Introducing modern workforce management and performance measurement techniques.
• Establishing training facilities and a training unit to improve staff expertise and motivation.

Property Tax Policy

The current tax base is limited due to:

• High levels of exemptions and reliefs.
• A differential tax rate between self-occupied and rented properties.
• Outdated valuation tables and inconsistent classification of urban and rural areas.

To address these issues, the blueprint recommends:

• Revisiting the Punjab Immovable Property Tax Law (PIPT) to widen the tax base.
• Conducting a revaluation of all properties.
• Reclassifying areas that are urban in nature but classified as rural.
• Reducing exemptions and reliefs.
• Eliminating or reducing the differential tax rate.
• Implementing indexation of tax rates.

Information Technology

The blueprint stresses the importance of modern ICT systems for the success of the program. Key recommendations include:

• Enhancing and developing the ETAC system to international standards.
• Implementing a document management system.
• Introducing office systems and a Departmental intranet.
• Setting up a Departmental email system.
• Creating a training unit and professional links with a tax institute.

Core Administration

The blueprint recommends the adoption of core administrative tasks in an electronic environment, including:

• Implementing data protection and security principles.
• Developing effective backup and disaster recovery procedures.
• Ensuring transparency and performance monitoring through a service relationship framework.

Customer Services

The current customer service infrastructure is inadequate. The blueprint proposes:

• Creating modern customer service centres.
• Offering electronic access through websites, digital TV, kiosks, and text messaging.
• Developing a customer access strategy to improve understanding and engagement.
• Establishing a "walk before you run" approach with the creation of model offices to test and refine the proposed changes.

Programme Management

To ensure successful implementation, the blueprint recommends:

• Establishing a Programme Change Unit.
• Forming a high-level Steering Group to monitor and direct the reform process.
• Ensuring that reforms are implemented in the correct sequence to avoid inefficiencies.
• A coordinated and consistent approach to change across all departments.

Conclusion

The blueprint outlines a comprehensive reform strategy for the Punjab Property Tax system. It emphasizes the need for institutional restructuring, modernisation through technology, and customer-centric service delivery. The success of the program depends on clear governance, effective human resource planning, and a strong policy framework. The Action Plan is structured around a time-based approach to ensure sustainable and efficient implementation.