How much do you love Pakistan?

PSSP Working Paper 018 "How much do you love Pakistan? A property tax revenue simulation for a municipal revolution in Punjab" conducted empirical policy research on property taxation with regard to fiscal revenue options and growth potential of cities. The study incorporates a legal and procedural review of the property tax system in Punjab and data collection primarily from one rural Tehsil of Punjab for the Urban Immovable Property Tax (UIPT) and the agricultural-land Local Rate tax. Key Informant Interviews were conducted to highlight the weaknesses in the local property tax systems arising from issues such as inter-governmental fiscal relations; classification, valuation and assessment mechanisms; political factors; compliance culture; tax administration functions, especially record-keeping; and exemptions and preferential treatments. Finally, simulations were undertaken to show the potential revenue increase from a variety of urban and rural property tax policy options. Results show substantial potential gains in tax revenue from extending the UIPT to built-up village Lal Lakeer Localities and other policy options.