LAHORE – Authorities in Punjab rolled out new hurdle for property owners, linking buying and selling of properties with clearance of garbage tax. Under new rule, property NOCs will only be issued after outstanding sanitation fees and property taxes are paid.
Under new system, property owners will have to clear both property tax and sanitation charges before getting NOC required for the sale or purchase of a property. Previously, clearance of property tax alone was enough for the NOC process.
The new requirement could affect thousands of property transactions as sanitation fee bills are being distributed across urban areas of Punjab, including Lahore.
Punjab government is rolling out sanitation fee bills for around 5 million residential and commercial properties across urban Punjab under the Suthra Punjab programme. The distribution of bills starts in October 2026 after data integration between the Suthra Punjab Authority and the Excise Department was completed.
The government has set an ambitious revenue target from the new system, aiming to collect around Rs40 billion annually in sanitation fees from more than 5 million properties.
Property tax collection is expected to generate another Rs42 billion or more, taking the combined target from the two streams to above Rs82 billion.
New sanitation charges for property owners
| Property Size | Monthly Fee |
|---|---|
| Up to 5 marla | Rs300 |
| 5–10 marla | Rs500 |
| 10–20 marla | Rs1,000 |
| 20–40 marla | Rs2,000 |
| Above 40 marla | Rs5,000 |
Commercial properties will also be charged according to their category, with monthly fees generally ranging from Rs500 for small shops and businesses to Rs1,000 for medium-sized businesses and Rs3,000 for large businesses and factories.
The sanitation fee is being collected through two bills covering six months each rather than a single annual bill. The initial bills being distributed in October cover the first billing period of the new system. Property owners will generally have 60 days from receipt of the bill to make payment, while late payments may result in additional penalties.
The bills are being prepared using data from the Urban Unit, while Excise inspectors are responsible for distributing them to property owners.
With the Excise Department now handling collection, owners seeking to sell or transfer property may have to clear outstanding sanitation charges before their NOC can be issued.
The move comes under the Suthra Punjab programme, which aims to improve waste management and sanitation services across the province. Previously, recovery of sanitation-related charges by local governments and other institutions remained low, reportedly falling below 15 percent during the first quarter. The government subsequently shifted collection responsibilities to the Excise Department in an effort to improve recovery.
The sanitation fee generally does not cover properties located in cantonment areas, DHA and certain private housing schemes, where separate arrangements for sanitation and waste management are already in place.
No more file-based property trading in Lahore from July 1, 2026
