Lahore: The Punjab Excise and Taxation Department has introduced major reforms in the property tax system following approval from the provincial cabinet. The initiative aims to enhance transparency, simplify compliance, and encourage broader participation in the tax net, particularly in the housing sector.
Under the revised framework, residential properties valued up to PKR 5 million will now be exempt from property tax. Director General Excise and Taxation Umar Sher Chattha stated that assessments will now be based on District Collector (DC) table values to ensure consistency across districts.
The reform package also includes a self-assessment mechanism, enabling citizens to independently calculate their property tax liabilities. This step is expected to reduce dependency on field assessments and minimize disputes.
For existing taxpayers, there will be no additional tax burden during the current fiscal year. However, new taxpayers will be required to pay only 25% of the total property tax amount in their first year. According to officials, this relief measure has been designed to incentivize first-time filers and expand the tax base.
In a related development, the federal government has exempted non-filers from paying tax on the purchase of properties valued up to PKR 10 million. This decision, recommended by the National Assembly’s Standing Committee on Finance and approved by the Federal Board of Revenue (FBR), has been widely welcomed by stakeholders in the real estate sector.
The Association of Builders and Developers of Pakistan (ABAD) praised the move, stating it would support middle-income buyers and drive much-needed activity in the housing market. Officials noted that the revenue collected under the new system will be utilized to enhance municipal and infrastructure services in the areas where taxes are collected. The reforms mark a shift towards a more citizen-centric and predictable property tax regime, aligning with broader efforts to digitize and modernize tax administration in Punjab.
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.
