Lahore: The Punjab government has introduced a new property tax system to simplify processes, eliminate complexities and enhance transparency.
According to Minister of Excise, Taxation and Narcotics Control Masoud Mukhtar, the new system has become effective from January 1, 2025, and property taxes will now be determined based on the DC schedule of the respective district for all types of properties.
Under the amended system, property tax assessment will shift from relying on rental value to capital value. Property owners will be enabled to self-assess the value of their property for tax purposes, and their declared valuation will be accepted as valid for tax collection.
Highlighting the importance of these reforms, Masoud Mukhtar said: “This represents a major shift in property tax assessment after 65 years, with the aim of simplifying the tax process, ensuring uniformity and enhancing transparency. These changes are designed for public benefit only and should not be considered an additional financial burden.” .
Director General of Excise and Taxation, Punjab, Omar Sher Chatta, spoke about the incentives accompanying these reforms. He announced that no additional taxes will be imposed on existing taxpayers under the new system until June 30, 2025. Furthermore, individuals entering the tax network for the first time will receive a concession of up to 50% on their outstanding entitlements. New taxpayers will also benefit by paying only 25% of the total tax for the next six months.
These reforms confirm the government’s commitment to facilitating matters for taxpayers while enhancing transparency and accountability. They are expected to play a pivotal role in promoting economic development in the province.