The “tax amount” for property tax, which will be based on the official price set by the Deputy Commissioners (DCs) for the purchase and sale of all types of property throughout the province, has been authorized by the Punjab Excise, Taxation and Narcotics Control Department (PETSCD) in line with the new tax formula.
The Deputy Commissioner (DC) rate will now be used to determine the ultimate amount of both household and commercial property taxes.
This formula will be in effect as of January 1, 2025. Until December 31, 2024, property taxes will be paid in accordance with the department’s own assessment value.
The department will benefit from the new methodology in terms of property taxes for residential areas across all districts, while tax income and tax rates for all commercial areas will record lows.
This is due to the fact that the market value of each business sector varies, with the DC value being 20–40% less than the market value.
According to local media reports who cited sources at PETNCD, this new property tax formula has the possibility of lowering the objective for property taxes.
They also mentioned that the domestic rate is declining annually and that the commercial property tax payment rate might reach 90%.
By December 31st in any event, all property tax inspectors are expected to reach the tax objective. Property tax will be sent to the taxpayer using the revised formula on January 1, 2025, if they do not pay by the December 31 deadline.
