Lahore: The Excise Department has proposed the Punjab Government to introduce rent-based property tax exemption on five-marla houses and to abolish farmhouse tax in the budget 2018-19, according to a news report.
Officials clarified that these were just proposals and would only be put forward if the provincial government decides whether to present the budget for the next fiscal year, or restrict it to the next four months. According to documents, there is also a proposal to amend the Punjab Urban Immoveable Property Tax Act, 1958, to provide property tax exemption to ‘‘one residential house or vacant plot, measuring an area not exceeding five marla used or to be used for residential purpose’’ and having ‘’gross annual rental value up to PKR 54,000 in case of self-occupied residential house or gross annual rental value up to PKR 154,000 in case of rental house.’’
Previously, these exemptions were applicable for category-A five-marla houses with annual value more than PKR 5,000, leaving many valuable homes out of the tax net.
