LAHORE: Punjab’s interim government has approved the property tax assessment across the province after a hiatus of nine years.
As per the summary approved by the cabinet, a new valuation table of property tax will be created to determine the property tax based on the new rents.
It will be followed by a 400% increase in property tax on commercial and residential properties in posh areas (category A).
After the survey, work, and calculation regarding the increase in property tax, the summary will be sent to the cabinet for approval.
Sources said the new valuation table would include A category to G category.
The cabinet has also approved the imposition of property tax on even 5-marla houses in posh areas (Category A), which were earlier exempted from property tax.
The sources said that property tax assessment in Punjab was last done in 2014. According to the law, property tax assessment has to be done after every five years, which was not done.
They said that according to the property tax assessment in 2014, in the A category areas, the rent of commercial property is Rs120 per sq ft while the property tax for personal use is fixed at a flat rate of Rs24 per sq ft.
The rent per sq ft of these commercial properties has reached Rs500, which will be assessed for property tax based on the current rent.
As per the consolidation, the previous valuation table will expire on December 31, 2023, and a new assessment must be applied from January 1, 2024, based on the existing rent.
The cabinet has approved a token tax of Rs2,500 per seat on vehicles with seven or more seats, plus 3% and minimum 2% on booking of vehicles from 1,500 to 2,000cc and on registration of electric vehicles, 95 percent exemption from token tax extended till June 30, 2025.
Punjab has also increased the steelhead duty on liquor from Rs600 to Rs1,200 per gallon, and vendor fee has been increased from Rs1,600 to Rs2,500 per gallon.
