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Assessment of Property Tax approved across the province

Assessment of Property Tax approved across the province

The Punjab government has approved property tax assessments throughout the province after a nine-year pause. The provincial cabinet has endorsed a summary that proposes the creation of a comprehensive valuation table for property tax utilizing recent rental rates. If implemented, this move is expected to lead to a 400% increase in property taxes for both commercial and residential properties (classified as ‘A’ and situated in high-value areas).

Upon completion of the property tax assessment, processing, and calculations, the revised valuation table will be formally submitted to the cabinet for approval. The comprehensive matrix will cover property types A through G and entail property taxes for previously exempt A-category 5-marla houses in high-value areas.

Sources indicate that the last property tax assessment conducted in Punjab was in 2014. The rent for commercial properties in Category A areas was determined to be 120 PKR per square foot, while the rent for residential use was 24 PKR per square foot during the recent assessments. The current tax assessment is based on the updated rent estimate of PKR 500 per square foot for these properties. Additionally, it is worth noting that the previous valuation table will expire on December 31, and the new rates will come into effect on January 1, 2024.

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