Rawalpindi mulls jacking up property tax

RAWALPINDI:

Authorities in Rawalpindi are set to jack up property taxes from the beginning of next year, worrying property owners.

Starting January 1, 2025, five-marla properties will also be taxed.

According to sources, the Department of Excise, Taxation, and Narcotics Control has announced the new tax rates following the approval of revised property tax regulations.

The deputy commissioner has issued updated DC rate lists for both residential and commercial properties for the financial year 2024-25.

In a move driven by the financial crisis in Punjab, the DC property rates have been raised by up to 300 per cent. This sharp increase is a departure from the usual 10 per cent annual increment in property rates, signalling the severe economic challenges faced by the region.

The excise department has initiated new tax assessments in all posh and middle-class areas of the Rawalpindi Division, based on the updated DC rates. Property owners will begin receiving new tax bills between September 15 and October 15.

The distribution process is expected to conclude by December 15, with the new rates being implemented from January 1, 2025.

Sources have indicated that these new property taxes will lead to a substantial financial burden on property owners, with many expected to face significant increases in their tax liabilities. Traditionally, the DC rate sees an annual increase of around 10 per cent, but this year the hike ranges from 20 per cent to 300 per cent, depending on the area.

In light of these changes, the property tax structure has been revised, creating four taxpayer categories including A-plus, A, B, and C. Additionally, four new categories have been established for commercial areas to better reflect their economic standing.

To ensure efficient tax collection, the excise department has expanded its operational zones in Rawalpindi from four to five. Director General Excise Faisal Farid has also directed officials to meet property tax collection targets on a quarterly basis.