Punjab Government Announce 5% Rebate on Payment of Property Tax

Punjab Government Announce 5% Rebate on Payment of Property Tax

All property taxpayers are informed that the Government of Punjab is providing a 5% rebate on payment of property tax before 30th September 2022. An additional discount of 5% would also be admissible on the payment through EPay. Please pay your property tax in time to avail the rebate.

Rate of Tax

Under the provisions of the Act, the property tax is levied on the annual value of buildings and land located in the rating area. It is levied at the rate of 5% of the annual value at which the property may be let out from year to year basis

Procedure for Assessment

Assessment of the properties is based primarily on the nature of occupation and the type of building. Locality-wise yardsticks for commercial and residential, self or rented as the case may be properties have been prescribed. The annual value of the properties is calculated through these yardsticks. On the basis of the annual value of the property unit, Property Tax is charged at the rates mentioned above.

Time and Mode

• The Property Tax may be deposited on or before the 30th day of September with a 5% rebate of tax for the current financial year
• Time allowed for payment is 30 days from the date of serving of Demand Notice accompanied with the Challan Form
• The tax is deposited into the Treasury or State Bank or in the specified branches of the National Bank of Pakistan
• Payment can be made through a cheque (accompanied by Challan Form) drawn on a scheduled bank in favor of the Excise & Taxation Officer of the District concerned

Rebate and Surcharge

• A rebate equal to 5 % of the amount of annual tax for the financial year is allowed if the amount of annual tax paid in lumpsum on or before the 30th September of the financial year
• A late payment surcharge at the rate of one percent of the gross payable tax shall stand imposed on the first day of every month of delay if the tax payable for any year is not paid by the 30th day of September of the said year

Exemptions

• Residential houses constructed on a land area less than 5 Marla other than the locality of category "A"
• The Property is not capable of commanding annual rent exceeding PKR. 4320/-
• A single house not commanding annual rent exceeding PKR. 6480/- if occupied by the owner for his residences
• The buildings owned by widows, minor orphans,s and/or disabled person tax liability of which is up to PKR.12150/- per annum are exempted
• One residential house up to one Kanal owned and occupied by a Federal or Provincial Retired Government servant is exempted
• Those buildings owned by the Government or a Local Authority such as a Corporation, Municipality, or town committee
• Mosques and other religious buildings
• Buildings and Lands used as public parks and playgrounds, schools, boarding, houses, hostels, libraries, and hospitals
• Properties the rents of which are devoted exclusively to religious or prescribed public charitable institutions

Land Revenue Act 1967

Notice under section 81 of Land Revenue Act 1967 is stated as below: Whenever an assessee does not pay in time, the ETO with delegated powers of Assistant Collector Grade - I under Punjab Land Revenue Act, 1967 may issue a demand notice under Section 81 of the Act ibid. On receipt of this notice, the assessee should immediately contact Excise & Taxation Officer because the next step will be warrants of arrest for the defaulter