What are the Property Tax Rates in Punjab, Pakistan?
The government of the Punjab had decreased the property tax rate on the value of urban immovable properties, but had increased the valuation rates of such properties. The net effect of this increase in property valuation alongside a decrease in tax rates was a higher property tax liability for property owners. This change was meant to be tactful, but the end result of increased prospective tax liability was not acceptable to the business community and other stakeholders, and there was a a certain amount of unrest. Ultimately, the government took back the decision to change the rate, and the old rate has been restored today.Now, the effective rate of tax begins at 20% and the schedule of valuation is the same as it was in 2013. As before, if Gross Annual Rental Value exceeds Rs 20,000, the effective tax on the value is 25%.
The essence of all this is that:
1. The Property Tax Schedule for valuing properties has not been revised;
2. Property tax rates are the same as those in 2013;
3. There is no change in your tax bill if you have already correctly recorded your property in the property tax records; and
4. There will be a change in your property tax bill if you have a property which had previously been under-assessed, or un-assessed.
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What are the property tax rates, Punjab, Pakistan for 2013?
