Rawalpindi: The Punjab government has introduced a 16 per cent General Sales Tax (GST) on rented properties across Rawalpindi district and the rest of the province under a new fiscal measure, effective from July 1.
According to the new policy, all rented non-residential buildings and other immovable properties will fall under the GST regime at a rate of 16pc.
Alongside the GST measure, revisions have also been made in the provincial property tax system. For taxpayers registered before January 1, 2025, a cap of 20pc on capital value assessment will be applied under the revised framework.
The government has also introduced a 5pc discount on property tax payments made under the self-assessment scheme to encourage timely compliance.
Further changes include the introduction of digital payment facilitation through the E-Pay Punjab platform, aiming to streamline tax collection and improve efficiency.
In case of non-payment, surcharges will be applied on a quarterly basis in addition to the original tax liability. The surcharge structure will increase on October 31, January 31, April 30 and July 31 each year.
The new GST will also be applicable to smaller residential properties that are rented out by owners. Officials say the measures are part of broader efforts to expand the tax base and improve documentation within the property sector.
The policy has been notified across the province and will come into effect from July 1.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
