Punjab Imposes Property Tax on Small Houses in Rawalpindi
The Excise, Taxation and Narcotics Control Department in Punjab has initiated the issuance of property tax bills ranging from Rs150,000 to Rs200,000 to owners of small houses in the Rawalpindi Division. The move comes after a significant shortfall in tax collection from affluent areas, including upscale localities, major housing societies, commercial zones, and large properties.
The department has notably brought houses measuring two, two-and-a-half, and three marlas back into the tax net. This is a reversal of the policy established some 25 years ago when privately owned houses up to five marlas were exempted from property tax across the province.
In recent years, the Rawalpindi Division has experienced a persistent 50% shortfall in tax revenue from large shopping malls, plazas, major residential societies, and large houses. To compensate for this deficit, the department has resorted to levying heavy bills not only on large properties but also on small houses, leading to the issuance of sizable tax demands.
Authorities have reportedly begun sealing properties over non-payment and have even taken legal actions including detaining some property owners. There are reports of tax recovery efforts from economically vulnerable residents, including the sale of household belongings.
These rigorous enforcement measures have sparked disputes between residents and department officials, raising concerns about potential escalations. While residents emphasize that properties up to five marlas were previously exempt from taxation, many owning two to four marla houses have received tax bills between Rs150,000 and Rs300,000.
The Punjab government’s renewed focus on expanding the tax base underscores the challenges faced by the department in collecting revenues from more affluent sectors. Nonetheless, the impact on lower-income property owners has drawn criticism and concern from the community.
