{"id":9774,"date":"2019-06-10T12:00:40","date_gmt":"2019-06-10T12:00:40","guid":{"rendered":"http:\/\/www.zameen.com\/blog\/?p=9774"},"modified":"2020-03-05T08:07:56","modified_gmt":"2020-03-05T08:07:56","slug":"understanding-property-tax-rates-in-pakistan","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/blog\/understanding-property-tax-rates-in-pakistan.html","title":{"rendered":"Understanding Property Tax Rates in Pakistan"},"content":{"rendered":"\n<p><strong>In This Post:<\/strong><br>&#8211; <a href=\"#calculating-residential-tax\">Calculate Residential Property Tax<\/a><br>&#8211; <a href=\"#calculating-tax-commercial-property\">Calculate Commercial Property Tax<\/a><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Taxes are complicated and calculating property taxes, in particular, require a great deal of understanding and care. In this blog, we shall attempt to explain property tax rates in Pakistan, the government-issued valuation table and how you can determine the annual value. Rest assured, Zameen.com is here to help.<\/span><\/p>\n\n\n\n<p><a href=\"https:\/\/www.zameen.com\/blog\/everything-you-need-to-know-about-taxes-on-property-in-pakistan.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">Property Tax<\/span><\/a><span style=\"font-weight: 400\"> is levied on commercial and residential buildings and land by the provincial governments of Pakistan. The Excise &amp; Taxation (E&amp;T) Departments of the provincial governments draft Valuation Tables regularly, which provide certain figures based on different measures for each province, and sometimes for different cities within a province. These tables use more or less the same formula in every province to calculate annual value (more on this later) but in different ways. Within the blog, you can also find links where you can calculate property taxes using formula in detail.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Take a look at the Residential Property Valuation Table released &nbsp;by the E&amp;T Department of Punjab below, for example.<\/span><\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><b>RESIDENTIAL<\/b><\/td><\/tr><tr><td><b>CATEGORY<\/b><\/td><td><b>RENTED<\/b><\/td><td><b>SELF-OCCUPIED<\/b><\/td><\/tr><tr><td><b>RATE OF LAND SQ. YD. (IN PKR)<\/b><\/td><td><b>RATE OF COVERED AREA IN SQ. FT. (IN PKR)<\/b><\/td><td><b>RATE OF LAND SQ. YD. (IN PKR)<\/b><\/td><td><b>RATE OF COVERED AREA IN SQ. FT. (IN PKR)<\/b><\/td><\/tr><tr><td><b>Up to 500<\/b><\/td><td><b>Exceeding 500<\/b><\/td><td><b>Up to 3,000<\/b><\/td><td><b>Exceeding 3,000<\/b><\/td><td><b>Up to 500<\/b><\/td><td><b>Exceeding 500<\/b><\/td><td><b>Up to 3,000<\/b><\/td><td><b>Exceeding 3,000<\/b><\/td><\/tr><tr><td><b>A<\/b><\/td><td><span style=\"font-weight: 400\">23<\/span><\/td><td><span style=\"font-weight: 400\">18.4<\/span><\/td><td><span style=\"font-weight: 400\">23<\/span><\/td><td><span style=\"font-weight: 400\">18.4<\/span><\/td><td><span style=\"font-weight: 400\">4.6<\/span><\/td><td><span style=\"font-weight: 400\">3.68<\/span><\/td><td><span style=\"font-weight: 400\">4.6<\/span><\/td><td><span style=\"font-weight: 400\">3.68<\/span><\/td><\/tr><tr><td><b>B<\/b><\/td><td><span style=\"font-weight: 400\">17<\/span><\/td><td><span style=\"font-weight: 400\">13.6<\/span><\/td><td><span style=\"font-weight: 400\">17<\/span><\/td><td><span style=\"font-weight: 400\">13.6<\/span><\/td><td><span style=\"font-weight: 400\">3.4<\/span><\/td><td><span style=\"font-weight: 400\">2.72<\/span><\/td><td><span style=\"font-weight: 400\">3.4<\/span><\/td><td><span style=\"font-weight: 400\">2.72<\/span><\/td><\/tr><tr><td><b>C<\/b><\/td><td><span style=\"font-weight: 400\">14<\/span><\/td><td><span style=\"font-weight: 400\">11.2<\/span><\/td><td><span style=\"font-weight: 400\">14<\/span><\/td><td><span style=\"font-weight: 400\">11.2<\/span><\/td><td><span style=\"font-weight: 400\">2.8<\/span><\/td><td><span style=\"font-weight: 400\">2.24<\/span><\/td><td><span style=\"font-weight: 400\">2.8<\/span><\/td><td><span style=\"font-weight: 400\">2.24<\/span><\/td><\/tr><tr><td><b>D<\/b><\/td><td><span style=\"font-weight: 400\">11<\/span><\/td><td><span style=\"font-weight: 400\">8.8<\/span><\/td><td><span style=\"font-weight: 400\">11<\/span><\/td><td><span style=\"font-weight: 400\">8.8<\/span><\/td><td><span style=\"font-weight: 400\">2.2<\/span><\/td><td><span style=\"font-weight: 400\">1.76<\/span><\/td><td><span style=\"font-weight: 400\">2.2<\/span><\/td><td><span style=\"font-weight: 400\">1.76<\/span><\/td><\/tr><tr><td><b>E<\/b><\/td><td><span style=\"font-weight: 400\">8.2<\/span><\/td><td><span style=\"font-weight: 400\">6.56<\/span><\/td><td><span style=\"font-weight: 400\">8.2<\/span><\/td><td><span style=\"font-weight: 400\">6.56<\/span><\/td><td><span style=\"font-weight: 400\">1.64<\/span><\/td><td><span style=\"font-weight: 400\">1.31<\/span><\/td><td><span style=\"font-weight: 400\">1.64<\/span><\/td><td><span style=\"font-weight: 400\">1.31<\/span><\/td><\/tr><tr><td><b>F<\/b><\/td><td><span style=\"font-weight: 400\">6.5<\/span><\/td><td><span style=\"font-weight: 400\">5.2<\/span><\/td><td><span style=\"font-weight: 400\">6.5<\/span><\/td><td><span style=\"font-weight: 400\">5.2<\/span><\/td><td><span style=\"font-weight: 400\">1.3<\/span><\/td><td><span style=\"font-weight: 400\">1.04<\/span><\/td><td><span style=\"font-weight: 400\">1.3<\/span><\/td><td><span style=\"font-weight: 400\">1.04<\/span><\/td><\/tr><tr><td><b>G<\/b><\/td><td><span style=\"font-weight: 400\">4<\/span><\/td><td><span style=\"font-weight: 400\">3.2<\/span><\/td><td><span style=\"font-weight: 400\">4<\/span><\/td><td><span style=\"font-weight: 400\">3.2<\/span><\/td><td><span style=\"font-weight: 400\">0.8<\/span><\/td><td><span style=\"font-weight: 400\">0.64<\/span><\/td><td><span style=\"font-weight: 400\">0.8<\/span><\/td><td><span style=\"font-weight: 400\">0.64<\/span><\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><span style=\"font-weight: 400\">This table seems difficult to understand. Determining property tax rates in Pakistan seems really complicated because there appears to be a lot of calculation and legal jargon involved. They are not nearly as complex in reality, though. So take a deep breath and let us walk you through this table step by step.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><b>Determining the tax amount<\/b><\/h2>\n\n\n\n<div class=\"wp-block-image wp-image-59934 size-large\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/www.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-2-b-1024x640.jpg\" alt=\"Calculating property tax in Pakistan\" class=\"wp-image-59934\" srcset=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-2-b-1024x640.jpg 1024w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-2-b-300x188.jpg 300w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-2-b-768x480.jpg 768w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-2-b-640x400.jpg 640w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-2-b.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Determining property tax rates in Pakistan can be tricky<\/figcaption><\/figure><\/div>\n\n\n\n<p><span style=\"font-weight: 400\">Property tax is levied on the&nbsp;<\/span>annual value<span style=\"font-weight: 400\">&nbsp;of land and buildings. In Punjab, for example, the tax is levied at the rate of 5% of the annual value. Simply put, the annual value of a property is the estimated amount the property would fetch if rented out for a year (12 calendar months). Calculating the annual value is the only tricky bit in all of this. Once we have this value, calculating the tax is a breeze.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Other provinces use different rates. The Sindh government, for example, taxes properties at the rate of 25% of annual value. This seems huge when compared to the rates in Punjab, but the prices set in the valuation table, to calculate annual values issued by the Sindh E&amp;T Department, are comparatively lower, so the final tax amount that you have to pay comes roughly within the same bracket.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The numbers provided to calculate the annual value of a property vary from category to category and from size to size, as well as depending on whether it has been rented out or is occupied by the owner in case of Punjab.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">To begin with, if you don\u2019t already know it, you may have to find the category in the valuation table &nbsp;for the area where you have your property. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Once you have the category, annual value is calculated in four steps:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">i) (Total Land Area of a Property) x (Per square yard rent prescribed in Valuation Table) = <\/span><b>A<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">ii) (Total Covered Area of a Property) x (Per square foot rent prescribed in Valuation Table) = <\/span><b>B<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">iii) (A + B) x 12 = Gross Annual Rental Value (GARV)<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">iv)&nbsp; GARV \u2013 10% of GARV = Annual Rental Value (or annual value)<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"calculating-residential-tax\"><b>Residential<\/b><\/h3>\n\n\n\n<div class=\"wp-block-image wp-image-59930 size-large\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"640\" src=\"https:\/\/www.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-1-b-1024x640.jpg\" alt=\"Determine tax amount in Pakistan\" class=\"wp-image-59930\" srcset=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-1-b-1024x640.jpg 1024w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-1-b-300x188.jpg 300w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-1-b-768x480.jpg 768w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-1-b-640x400.jpg 640w, https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2014\/10\/image-1-b.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Calculating property taxes in Pakistan is no piece of cake<\/figcaption><\/figure><\/div>\n\n\n\n<p><span style=\"font-weight: 400\">The Valuation Table above gives us all the necessary information to calculate the tax, so using it, let\u2019s calculate the property tax for a single-storey 1-kanal (500 square yard) home in a Category A area in Lahore rented out to a tenant, just as an example.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">One kanal or 500 square yard is equal to 4,500 square foot. Let\u2019s say the covered area in this home is 3,350 square foot. So according to the table, land of this size in Category A would fetch PKR 23 per square yard in rent every month, and the house built on it would fetch PKR 23 per square foot for 3,000 square foot and PKR 18.40 per square foot for the remaining 350 square foot<\/span><span style=\"font-weight: 400\">&nbsp;in rent per month.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">We know the land area for this house is 500 square yard<\/span><span style=\"font-weight: 400\">&nbsp;and the covered area is 3,350 square foot<\/span><span style=\"font-weight: 400\">. Going by the steps above, the calculation would be:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">i) 500 x 23 = 11,500<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">ii) (3,000 x 23)+ (350 x 18.40) = 75,440<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">iii) (11,500 + 75,440) x 12 = 1,043,280<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">iv) 1,043,280 \u2013 104,328 = <\/span>938,952<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">There you have it. PKR 938,952 is the annual value for the house we chose as an example. Since the Punjab government taxes property at 5% of annual value, the tax due would be:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">0.05 x 938,952 =&nbsp;<\/span>PKR 46,948<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">This number might vary slightly if the E&amp;T Department in question taxes covered area and open land using separate metrics (as it usually does, which involves separate slab of rent rate being applied on vacant land and covered area). Nevertheless, the ballpark figure you will get with this calculation should be fairly close to the real tax sum.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"calculating-tax-commercial-property\"><b>Commercial<\/b><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">When it comes to commercial property, the Punjab government\u2019s valuation tables now also distinguish between \u2018Main\u2019 and \u2018Off\u2019 properties within a category. This refers to the location of the commercial property, whether it lies on a main road or an off road. A main road is defined as a road with the width of 30 feet or more.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Please take a look at the Commercial Property Valuation Table issued in 2014 by the E&amp;T Department of the Punjab government:<\/span><\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><b>COMMERCIAL<\/b><\/td><\/tr><tr><td><b>CATEGORY<\/b><\/td><td><b>RENTED<\/b><\/td><td><b>SELF-OCCUPIED<\/b><\/td><\/tr><tr><td><b>RATE OF LAND SQ. YD. (IN PKR)<\/b><\/td><td><strong>RATE OF COVERED AREA IN SQ. FT. (IN PKR)<\/strong><\/td><td><b>RATE OF LAND SQ. YD. (IN PKR)<\/b><\/td><td><b>RATE OF COVERED AREA IN SQ. FT. (IN PKR)<\/b><\/td><\/tr><tr><td><b>Up to 500<\/b><\/td><td><b>Exceeding 500<\/b><\/td><td><b>Up to 3,000<\/b><\/td><td><b>Exceeding 3,000<\/b><\/td><td><b>Up to 500<\/b><\/td><td><b>Exceeding 500<\/b><\/td><td><b>Up to 3,000<\/b><\/td><td><b>Exceeding 3,000<\/b><\/td><\/tr><tr><td><b>A<\/b><\/td><td><span style=\"font-weight: 400\">Main&nbsp;<\/span><\/td><td><span style=\"font-weight: 400\">120<\/span><\/td><td><span style=\"font-weight: 400\">96<\/span><\/td><td><span style=\"font-weight: 400\">120<\/span><\/td><td><span style=\"font-weight: 400\">96<\/span><\/td><td><span style=\"font-weight: 400\">24<\/span><\/td><td><span style=\"font-weight: 400\">19.2<\/span><\/td><td><span style=\"font-weight: 400\">24<\/span><\/td><td><span style=\"font-weight: 400\">19.2<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">96<\/span><\/td><td><span style=\"font-weight: 400\">76.8<\/span><\/td><td><span style=\"font-weight: 400\">96<\/span><\/td><td><span style=\"font-weight: 400\">76.8<\/span><\/td><td><span style=\"font-weight: 400\">19.2<\/span><\/td><td><span style=\"font-weight: 400\">15.36<\/span><\/td><td><span style=\"font-weight: 400\">19.2<\/span><\/td><td><span style=\"font-weight: 400\">15.36<\/span><\/td><\/tr><tr><td><b>B<\/b><\/td><td><span style=\"font-weight: 400\">Main<\/span><\/td><td><span style=\"font-weight: 400\">80<\/span><\/td><td><span style=\"font-weight: 400\">64<\/span><\/td><td><span style=\"font-weight: 400\">80<\/span><\/td><td><span style=\"font-weight: 400\">64<\/span><\/td><td><span style=\"font-weight: 400\">16<\/span><\/td><td><span style=\"font-weight: 400\">12.8<\/span><\/td><td><span style=\"font-weight: 400\">16<\/span><\/td><td><span style=\"font-weight: 400\">12.8<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">64<\/span><\/td><td><span style=\"font-weight: 400\">51.2<\/span><\/td><td><span style=\"font-weight: 400\">64<\/span><\/td><td><span style=\"font-weight: 400\">51.2<\/span><\/td><td><span style=\"font-weight: 400\">12.8<\/span><\/td><td><span style=\"font-weight: 400\">10.24<\/span><\/td><td><span style=\"font-weight: 400\">12.8<\/span><\/td><td><span style=\"font-weight: 400\">10.24<\/span><\/td><\/tr><tr><td><b>C<\/b><\/td><td><span style=\"font-weight: 400\">Main<\/span><\/td><td><span style=\"font-weight: 400\">56<\/span><\/td><td><span style=\"font-weight: 400\">44.8<\/span><\/td><td><span style=\"font-weight: 400\">56<\/span><\/td><td><span style=\"font-weight: 400\">44.8<\/span><\/td><td><span style=\"font-weight: 400\">11.2<\/span><\/td><td><span style=\"font-weight: 400\">8.96<\/span><\/td><td><span style=\"font-weight: 400\">11.2<\/span><\/td><td><span style=\"font-weight: 400\">8.96<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">44.8<\/span><\/td><td><span style=\"font-weight: 400\">35.8<\/span><\/td><td><span style=\"font-weight: 400\">44.8<\/span><\/td><td><span style=\"font-weight: 400\">35.8<\/span><\/td><td><span style=\"font-weight: 400\">8.96<\/span><\/td><td><span style=\"font-weight: 400\">7.17<\/span><\/td><td><span style=\"font-weight: 400\">8.96<\/span><\/td><td><span style=\"font-weight: 400\">7.17<\/span><\/td><\/tr><tr><td><b>D<\/b><\/td><td><span style=\"font-weight: 400\">Main<\/span><\/td><td><span style=\"font-weight: 400\">40<\/span><\/td><td><span style=\"font-weight: 400\">32<\/span><\/td><td><span style=\"font-weight: 400\">40<\/span><\/td><td><span style=\"font-weight: 400\">32<\/span><\/td><td><span style=\"font-weight: 400\">8<\/span><\/td><td><span style=\"font-weight: 400\">6.4<\/span><\/td><td><span style=\"font-weight: 400\">8<\/span><\/td><td><span style=\"font-weight: 400\">6.4<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">32<\/span><\/td><td><span style=\"font-weight: 400\">25.6<\/span><\/td><td><span style=\"font-weight: 400\">32<\/span><\/td><td><span style=\"font-weight: 400\">25.6<\/span><\/td><td><span style=\"font-weight: 400\">6.4<\/span><\/td><td><span style=\"font-weight: 400\">5.12<\/span><\/td><td><span style=\"font-weight: 400\">6.4<\/span><\/td><td><span style=\"font-weight: 400\">5.12<\/span><\/td><\/tr><tr><td><b>E<\/b><\/td><td><span style=\"font-weight: 400\">Main<\/span><\/td><td><span style=\"font-weight: 400\">30<\/span><\/td><td><span style=\"font-weight: 400\">24<\/span><\/td><td><span style=\"font-weight: 400\">30<\/span><\/td><td><span style=\"font-weight: 400\">24<\/span><\/td><td><span style=\"font-weight: 400\">6<\/span><\/td><td><span style=\"font-weight: 400\">4.8<\/span><\/td><td><span style=\"font-weight: 400\">6<\/span><\/td><td><span style=\"font-weight: 400\">4.8<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">24<\/span><\/td><td><span style=\"font-weight: 400\">19.2<\/span><\/td><td><span style=\"font-weight: 400\">24<\/span><\/td><td><span style=\"font-weight: 400\">19.2<\/span><\/td><td><span style=\"font-weight: 400\">4.8<\/span><\/td><td><span style=\"font-weight: 400\">3.84<\/span><\/td><td><span style=\"font-weight: 400\">4.8<\/span><\/td><td><span style=\"font-weight: 400\">3.84<\/span><\/td><\/tr><tr><td><b>F<\/b><\/td><td><span style=\"font-weight: 400\">Main<\/span><\/td><td><span style=\"font-weight: 400\">20<\/span><\/td><td><span style=\"font-weight: 400\">16<\/span><\/td><td><span style=\"font-weight: 400\">20<\/span><\/td><td><span style=\"font-weight: 400\">16<\/span><\/td><td><span style=\"font-weight: 400\">4<\/span><\/td><td><span style=\"font-weight: 400\">3.2<\/span><\/td><td><span style=\"font-weight: 400\">4<\/span><\/td><td><span style=\"font-weight: 400\">3.2<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">16<\/span><\/td><td><span style=\"font-weight: 400\">12.8<\/span><\/td><td><span style=\"font-weight: 400\">16<\/span><\/td><td><span style=\"font-weight: 400\">12.8<\/span><\/td><td><span style=\"font-weight: 400\">3.2<\/span><\/td><td><span style=\"font-weight: 400\">2.56<\/span><\/td><td><span style=\"font-weight: 400\">3.2<\/span><\/td><td><span style=\"font-weight: 400\">2.56<\/span><\/td><\/tr><tr><td><b>G<\/b><\/td><td><span style=\"font-weight: 400\">Main<\/span><\/td><td><span style=\"font-weight: 400\">15<\/span><\/td><td><span style=\"font-weight: 400\">12<\/span><\/td><td><span style=\"font-weight: 400\">15<\/span><\/td><td><span style=\"font-weight: 400\">12<\/span><\/td><td><span style=\"font-weight: 400\">3<\/span><\/td><td><span style=\"font-weight: 400\">2.4<\/span><\/td><td><span style=\"font-weight: 400\">3<\/span><\/td><td><span style=\"font-weight: 400\">2.4<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400\">Off<\/span><\/td><td><span style=\"font-weight: 400\">12<\/span><\/td><td><span style=\"font-weight: 400\">9.6<\/span><\/td><td><span style=\"font-weight: 400\">12<\/span><\/td><td><span style=\"font-weight: 400\">9.6<\/span><\/td><td><span style=\"font-weight: 400\">2.4<\/span><\/td><td><span style=\"font-weight: 400\">1.92<\/span><\/td><td><span style=\"font-weight: 400\">2.4<\/span><\/td><td><span style=\"font-weight: 400\">1.92<\/span><\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><span style=\"font-weight: 400\">Now, before you get freaked out by the seemingly increased complexity of this table, let me tell you that everything is practically the same as the residential table, the only difference being the \u2018Main\u2019 and \u2018Off\u2019 provisions. Let\u2019s do another hypothetical calculation so we can get a better idea of commercial property tax rates in Pakistan. The formula is the same as before.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Let\u2019s say for example that you have a 100 sq yd shop on an \u201coff road\u201d commercial area that falls within Category B, which you are occupying yourself. Using the table above, you can calculate the annual value as follows:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">i) 100 x 12.8 = 1,280<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">ii) 900 x 12.8 = 11,520<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">iii) (1,280 + 11,520) x 12 = 153,600<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">iv) 153,600 \u2013 15,360 = <\/span>138,240<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">According to this calculation, the annual value for such a shop will be PKR 138,240. The property tax due would therefore be:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">0.05 x 138,240 =&nbsp;<\/span>PKR<span style=\"font-weight: 400\">&nbsp;<\/span>6,912<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><b>Valuation tables and other details<\/b><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Valuation Tables and\/or tax details for the provinces can be accessed through the links below:<\/span><\/p>\n\n\n\n<p><a href=\"https:\/\/excise.punjab.gov.pk\/property_tax\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400\">Excise &amp; Taxation Department, Government of Punjab<\/span><\/a><\/p>\n\n\n\n<p><a href=\"http:\/\/excise.gos.pk\/taxes\/property-tax\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400\">Excise, Taxation &amp; Narcotics Department, Government of Sindh<\/span><\/a><\/p>\n\n\n\n<p><a href=\"http:\/\/www.kpexcise.gov.pk\/taxes\/uiptaxcomarea\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400\">Excise Department, Government of Khyber Pakhtunkhwa<\/span><\/a><\/p>\n\n\n\n<p><a href=\"http:\/\/www.balochistan.gov.pk\/index.php?option=com_content&amp;view=article&amp;id=1313&amp;Itemid=100491\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400\">Excise &amp; Taxation Department, Government of Balochistan<\/span><\/a><\/p>\n\n\n\n<p><b>REBATES &amp; EXEMPTIONS<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Rebates are incentives that the provincial governments provide to taxpayers at their discretion. For instance, the Punjab government gives a rebate equalling 5% of the tax amount for paying the tax in time and in lump sum. This ensures timely and efficient tax collection.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">All provinces declare specific properties which are exempted from paying property tax. These exemptions vary from province to province, and details can be found in the links we\u2019ve provided above. As an example, the Punjab government does not tax properties whose annual value is less than PKR 4,320, or buildings owned by widows, minor orphans and\/or disabled persons if they meet certain criteria.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">I hope this detailed explanation of understanding property tax rates in Pakistan will help you keep calm when you receive your next tax challan. For more blogs on property laws and taxes in Pakistan, stay tuned to <a href=\"http:\/\/zameen.com\/blog\" target=\"_blank\" rel=\"noopener noreferrer\">Zameen Blog<\/a>.<\/span><\/p>\n\n\n\n<p><strong>Disclaimer: <\/strong><em>The valuation rates used as examples in this post were taken from the Punjab Excise &amp; Taxation Department\u2019s <\/em><a href=\"https:\/\/excise.punjab.gov.pk\/system\/files\/Valuation_Table_New.jpg\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><em>website<\/em><\/a><em>. While we tried our best to ensure the figures are up to date, we cannot guarantee their accuracy. The examples are intended to be only a guide for readers, so please contact the relevant authorities for up-to-date tax figures in your province. &nbsp; &nbsp;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In This Post:&#8211; Calculate Residential Property Tax&#8211; Calculate Commercial Property Tax Taxes are complicated and calculating property taxes, in particular, require a great deal of understanding and care. In this blog, we shall attempt to explain property tax rates in Pakistan, the government-issued valuation table and how you can determine the annual value. Rest assured, Zameen.com is here to help. Property Tax is levied on commercial and residential buildings and land by the provincial governments of Pakistan. The Excise &amp; Taxation (E&amp;T) Departments of the provincial governments draft Valuation Tables regularly, which provide certain figures based on different measures for each province, and sometimes for different cities within a province. These tables use more or less the same formula in every province to calculate annual value (more on this later) but in different ways. Within the blog, you can also find links where you can calculate property taxes using formula in detail. Take a look at the Residential Property Valuation Table released &nbsp;by the E&amp;T Department of Punjab below, for example. RESIDENTIAL CATEGORY RENTED SELF-OCCUPIED RATE OF LAND SQ. YD. (IN PKR) RATE OF COVERED AREA IN SQ. FT. (IN PKR) RATE OF LAND SQ. YD. (IN PKR) RATE OF&hellip;<\/p>\n","protected":false},"author":84,"featured_media":59906,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11053],"tags":[549,544,543,548,545,547,546],"persona":[],"class_list":{"0":"post-9774","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-laws-taxes","8":"tag-how-to-calculate-property-tax","9":"tag-pakistan-property-tax","10":"tag-property-tax","11":"tag-property-tax-calculator","12":"tag-property-tax-rates-in-pakistan","13":"tag-punjab-property-tax","14":"tag-tax","15":"cat-11053-id"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding Proprety Tax Rates in Pakistan | Zameen Blog<\/title>\n<meta name=\"description\" content=\"If you want to develop a complete understanding of property tax rates in Pakistan, you have come to the right place. 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