New tax blitz hits citizens hard

Municipal committees across the Rawalpindi division, including in rural areas, have hiked municipal service fees to boost revenue under the Punjab Local Government Act 2022.

The Directorate of Local Government has cited rising inflation, utility bills, and electricity costs as reasons for delaying employees' salaries, which, they said, had prompted their decision to hike compulsory fees.

Municipal committees and corporations have also introduced new taxes in the current fiscal year, including marriage and cleanliness taxes. Additionally, various fees have been imposed on businesses in urban and rural areas, such as on groceries, vegetables, clothes, barber services and vendor shops. Notably, the marriage tax fee is now fixed at Rs2,000, while the marriage registration fee has doubled from Rs5,000 to Rs10,000. Village municipal committees have also raised domestic water bills from Rs250 to Rs750 per month and commercial water bills have been increased from Rs10,000 to Rs15,000.

Permit and professional taxes for shopkeepers have also increased substantially, with kebab stall owners now paying Rs3,000 - up from Rs1,000. Similarly, beef, meat, chicken, and grocery shops will pay Rs2,000, which is double the previous tax. Other affected businesses include tandoor shops, which are now paying a tax of Rs1,500 - up from Rs1,000, bakeries' tax has risen to Rs3,000 - up from Rs1,500 - while Naan roti (bread) shops' tax increased to Rs3,000 from Rs1,000. Milk and dairy shops have seen an increase in tax to Rs1,500 from Rs500.

Additionally, barbers face a doubling of taxes to Rs1,000 from Rs500. Paint shops now pay Rs5,000 - up from Rs2,500 - in tax and welding shops pay Rs5,000 - up from Rs2,800. Cloth fabric and shoe shops' taxes have increased to Rs2,000 from Rs1,000. Puncture and tyre shops' taxes have increased to Rs1,500 from Rs800, and most astonishingly booksellers' tax has more than doubled, going from Rs2,000 to Rs5,000.

Mapping fees have also seen significant increases. The fee for a single-story map of a five-marla house has risen from Rs3 to Rs10 per square foot. The fee for five-marla double-storey houses has increased from Rs5 to Rs20 per square foot and from Rs5 to Rs25 per square foot for ten-marla double-storey houses.