ByThe Punjab government has introduced a new property tax system, bringing a significant shift in how property taxes are calculated and collected. This reform eliminates the longstanding exemption for five-marla residential houses, impacting homeowners across the province.
Under the revised framework, property tax will no longer be based on the area of a property. Instead, it will be determined by the property’s valuation as assessed by the deputy commissioners, commonly referred to as Property DC rates. This change aims to align property taxation with market-based property values rather than size alone, ensuring a more equitable system of revenue collection.
Previously, houses up to five marlas enjoyed complete exemption from property tax. However, the new system imposes tax on properties valued at Rs. 5 million or more, regardless of their size. Properties valued below Rs. 5 million will remain exempt from taxation, offering relief to homeowners of lower-valued residences.
This policy shift is expected to broaden the tax net, enabling the provincial government to enhance revenue generation through property taxes. The move is particularly significant given Punjab’s ongoing efforts to bolster financial sustainability and improve public services. By taxing properties based on their monetary value, the government aims to target higher-value properties while continuing to shield lower-income homeowners from additional financial burdens.
The Punjab Excise and Taxation Department has been tasked with implementing and collecting this tax across the province. Homeowners are encouraged to familiarize themselves with the Property DC rates in their respective areas to understand the potential tax implications.
The decision has drawn mixed reactions from the public. Some view it as a necessary step to increase provincial revenue and ensure a fairer distribution of tax liabilities. Others, particularly those owning five-marla houses previously exempted from tax, express concerns about the added financial burden.
As the system is enforced, homeowners will need to comply with the new regulations. The government has emphasized that the reform is crucial for improving the province’s fiscal health and ensuring sustainable funding for infrastructure, education, and other public services. Meanwhile, stakeholders and citizens await further clarification and updates on the policy’s rollout and its impact on their properties.
