The Punjab Excise and Excise Department has unveiled significant reforms in the property tax system, aimed at enhancing transparency and uniformity, after Cabinet approval.
Director General of Excise and Excise Omar Sher Shertha said the reforms include property tax assessments based on District Collector (DC) scale values and exemptions for residential properties up to Rs 5 million. Existing taxpayers will not face additional liability this financial year, while new taxpayers will be required to pay only 25% of the total tax amount.
The administration also introduced a self-assessment system to facilitate citizens in calculating their taxes, while collecting revenues earmarked for improving services in the respective areas.
In a related development, the government’s decision to exempt non-candidates from tax on property purchases up to Rs 10 million has been praised by the Association of Pakistan Builders and Developers (ABAD).
This exemption, recommended by the Standing Committee on Finance of the National Finance Association and approved by the Federal Board of Revenue (FBR), is expected to stimulate growth in the housing market.