Punjab Assembly Passes Finance Bill with Updated Property Tax Rates

The Punjab Assembly recently passed the Finance Bill 2024-25, which includes updated property tax rates aimed at increasing revenue for the government. This decision comes after the approval of the budget for the fiscal year 2024-25, amounting to Rs5446 billion, through a majority vote. One of the key changes in this budget is the adjustment of property tax rates, which had remained unchanged for 70 years, impacting citizens dealing with rising inflation.

According to the new tax structure, residential properties valued up to Rs. 50 lakh will be exempt from taxes, providing relief to homeowners within this price range. Commercial properties valued between Rs5-10 million will be taxed at a rate of 0.07%, while properties valued between Rs10-25 million will face a tax rate of 0.08%. Commercial properties exceeding Rs25 million will be subject to a tax rate of 0.09%.

These revised tax rates are anticipated to generate significant revenues for the government. Projections suggest that the Punjab Revenue Authority will contribute over Rs30.065 billion, the Board of Revenue will add Rs. 10.570 billion, and the Excise Department will also make substantial contributions.

The approval of the Finance Bill 2024-25 by the Punjab Assembly marks a significant step towards enhancing revenue generation through revised property tax rates. These changes aim to strike a balance between taxation and economic growth, ensuring that the government can meet its financial obligations effectively. By implementing these new tax rates, the Punjab government is taking proactive measures to address the evolving economic landscape and support sustainable development in the region.