Taxation Reform Project

Country/Locality Pakistan
Overall project value (EUR)
 24,000
Name of client
 Government of Punjab, Excise and Taxation Department
Origin of funding
 World Bank
Starting date 02/2009
Ending date 05/2009
Partner IRRV - The Institute of Revenues Rating and Valuation (UK)
Detailed description of project
 The project aimed to support design and implementation of Urban Immovable Property Tax reform in Punjab (Pakistan), lay-down the foundation for a decentralized property tax policy and administration system with well allocated functions and adequate systems and capacities at provincial and local government levels

The Excise and Taxation Department and the Planning and Development Department’s Urban Unit of the Government of Punjab are the main beneficiaries of the project. The project aimed to prepare a larger World Bank technical assistance and capacity development program by delivering three outputs:
  1. assessment of the present state of the property tax system. This scope evaluation includes institutional review of the current tax assessment and collection procedures,
  2. designing a blue-print and an assessment of the structural reform, resources required for implementing the new property tax legislation
  3. proposal on the implementation of the action plan for a modern, reliable property tax system.
Type of services provided
 LGID was involved in the scope evaluation by assessing the gaps the current administrative, local government framework and in the intergovernmental fiscal relations. We have assessed the structure, current resources, efficiency, effectiveness of this institutional framework.

Based on this evaluation we contributed to the design of a detailed concept for a property tax system, formulating specific recommendations on the tax administration structure, local government finances as major building blocks of the UIPT reform. These proposals were translated to the five-year action plan of the Punjab property tax reform.