Punjab, Pakistan: Penalty on delayed payment of Property Tax

Penalty

The Excise and Taxation Officer (ETO) may impose a 100% penalty on an outstanding tax amount. If a taxpayer fails to pay property tax by the due date on the notice of tax demand, the ETO may recover from him a penalty not exceeding the amount of outstanding tax. However, the ETO cannot impose such a penalty unless he is satisfied that the taxpayer has willfully failed to pay the tax.

Surcharge

The government of the Punjab has imposed a surcharge on delayed payment of property tax. The surcharge applies to the outstanding balance of property tax @ 1% per month and is calculated with effect from 01.07.2012. If a person has no property tax arrears, he can make the following payments, with the corresponding penalty or rebate, during a financial year:

Month Original Tax Penalty, or (Rebate) Payable July 100 (5.00) 95.00 August 100 (5.00) 95.00 September 100 (5.00) 95.00 October 100 1.00 101.00 November 100 2.02 102.02 December 100 3.06 103.06 January* 100 4.12 104.12 February 100 5.21 105.21 March 100 6.31 106.31 April 100 7.44 107.44 May 100 8.60 108.60 June 100 9.77 109.77

* New calendar year starts here.