The Excise, Taxation and Narcotics Control Department in Rawalpindi has reported a 55 per cent shortfall in property tax recovery during the first half of the current financial year, prompting the department’s leadership to initiate corrective measures and plan the introduction of a garbage tax from January 2026.
According to departmental sources, the property branch failed to meet its tax targets between July 1 and December 20, despite issuing notices and carrying out enforcement actions against defaulters. The poor recovery has drawn strong displeasure from the excise and taxation director general, who has reprimanded officers over weak performance and issued show-cause notices to six officials.
As part of efforts to improve revenue collection, the department has decided to begin collecting garbage tax from houses and shops across the Rawalpindi Division from January 1, 2026. Garbage tax bills will be issued between January 10 and January 20, and cases may be registered against defaulters who fail to pay. Temporary daily-wage staff will be hired to distribute the bills, while the excise department will receive 10 per cent of the total recovery as compensation for the collection process.
Under the proposed structure, garbage tax in urban union councils will be PKR 300 per house, PKR 600 for double-storey houses, and PKR 900 for triple-storey houses, while in rural union councils the tax will be PKR 200 per house. Commercial shops located in streets and sitting areas will be charged PKR 300. For residential properties, the tax will range from PKR 300 to PKR 1,200 depending on plot size, while commercial shops will pay between PKR 1,000 and PKR 3,000. Factories and industrial units will be charged between PKR 2,000 and PKR 5,000.
The department has complete property data for districts and tehsils in the Rawalpindi Division and plans to distribute garbage tax bills to every house and shop. Officials say the move aims to broaden the tax base and improve municipal revenue collection.
Meanwhile, the department has intensified its property tax recovery drive. During operations conducted this week, 48 property units belonging to defaulters were sealed and PKR 5.8 million was recovered. Officials say enforcement activities will continue daily until December 31 in an effort to reduce the shortfall and improve overall tax recovery.
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.
