Lahore: The Punjab caretaker government has approved property tax assessments across the province after a hiatus of nine years, according to news published on July 31.
According to the summary approved by the provincial cabinet, an inclusive valuation table for property tax will be computed after considering the latest rental rates. It is also expected that this move might result in a staggering 400% increase in property tax for both commercial and residential properties (categorized as ‘A’ and located in high-value areas).
The summary of the revised property tax valuation table will be presented before the cabinet for approval after the survey, processing, and calculations regarding the tax hike are completed.
The said valuation table will encompass property categories A to G. Additionally, it is highlighted that the new revision will impose property taxes on A-category 5-marla houses located in posh areas – which were previously exempted.
According to sources, the property tax assessment in Punjab was last conducted in 2014. During the last assessments, the rent for commercial properties in Category A areas was declared as PKR 120 per square foot, while for residential use, it was PKR 24 per square foot. Presently, the rent for these properties is estimated to be PKR 500 per square foot, forming the basis of the latest tax assessment.
Moreover, the previous valuation table will expire on December 31, with the new rates set to become effective from January 1, 2024.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
