A new property tax formula has been authorized by the Punjab Excise, Taxation and Narcotics Control Department (PETSCD) and will go into effect on January 1, 2025.
The official prices set by the Deputy Commissioners (DCs) for the acquisition and sale of real estate throughout the province will be the basis for determining the final amounts of commercial and domestic property taxes under this new system.
Since the DC rates will be applied, it is anticipated that this new formula will improve the taxation of residential properties. It will, however, also cause a large drop in tax income and rates for commercial properties.
This is due to the fact that the DC values—which vary depending on the specific market conditions of each commercial area—are 20–40% less than the actual market values.
