Lahore: The Punjab Excise and Taxation Department has introduced a landmark reform in the property tax system, exempting residential properties valued at up to PKR 5 million from property tax. This initiative, approved by the provincial cabinet, aims to provide relief to homeowners and improve transparency in the taxation process.
Director General Excise and Taxation Umar Sher Chattha explained that the reforms are part of a broader effort to standardize property tax assessments by aligning them with district collector (DC) table values. Importantly, existing taxpayers will not face additional liabilities during the current fiscal year, while new taxpayers will be required to pay only 25% of their total tax liability.
Additionally, a self-assessment system has been introduced to help citizens calculate their taxes easily. Revenue collected under the new system will be allocated for enhancing services in respective areas.
In a related move, the government has also exempted non-filers from taxes on purchasing properties worth up to PKR 10 million. This decision, approved by the Federal Board of Revenue (FBR), has been widely welcomed by the Association of Builders and Developers of Pakistan (ABAD), who believe it will boost growth in the housing sector.
These measures reflect the government’s commitment to fostering economic growth and providing much-needed relief to the public.
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.
