LAHORE – Punjab has approved revising the property tax valuation table after nine years.
As per the media reports, the caretaker cabinet has approved the summary that provided the creation of a new valuation table to determine property tax based on new rents. The new valuation table will include A-G categories.
Taxes on commercial and residential properties in posh areas (category A) will be increased by up to 400 percent.
The cabinet has also approved the imposition of property tax on five-marla houses in posh areas (Category A), which were earlier exempted.
In Punjab, last property tax assessment was carried out in 2014.
According to the law, property tax assessment has to be done after every five years.
According to the previous property tax assessment, the rent of commercial property in category A is Rs120 per sq ft while that for personal use is flat Rs24 per sq ft.
The rent per sq ft of these commercial properties has reached Rs500, which will be assessed for property tax based on the current rent.
As per the consolidation, the previous valuation table will expire on December 31, 2023, and a new assessment must be applied from January 1, 2024, based on the existing rent.
The cabinet has approved a token tax of Rs2,500 per seat on vehicles with seven or more seats, plus 3 percent and minimum 2 percent on booking of vehicles from 1,500 to 2,000cc.
On registration of electric vehicles, 95 percent exemption from token tax has been extended till June 30, 2025.
