The Punjab caretaker government has given the green light to property tax assessments across the province, marking the first time in nine years.
The provincial cabinet has approved a comprehensive valuation table for property tax, which will be determined based on the latest rental rates.
However, this move is expected to result in a staggering 400% increase in property tax for commercial and residential properties falling under category ‘A’ and located in high-value areas.
The approved summary includes plans to conduct a thorough survey, process data, and perform calculations related to the tax hike before presenting the revised property tax valuation table to the cabinet for final approval.
Under the new valuation table, property categories ‘A’ to ‘G’ will be covered, with specific attention given to imposing property taxes on ‘A’-category 5-marla houses located in posh areas, which were previously exempted.
Notably, the last property tax assessment in Punjab occurred in 2014, during which the rental rates for commercial properties in category ‘A’ areas were set at PKR 120 per square foot. For residential properties, it was PKR 24 per square foot. Currently, the rental rates for these properties have surged to PKR 500 per square foot, serving as the basis for the latest tax assessment.
The existing valuation table is set to expire on December 31, and the new rates will come into effect starting January 1, 2024. Property owners in the province are urged to be prepared for the potential impact of the revised property tax assessments.
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