
The Excise, Taxation, and Narcotics Control Department has enforced an unprecedented 50% increase in residential and commercial property taxes across the Rawalpindi Division, issuing tax notices and leaving many taxpayers alarmed by the unexpectedly high amounts reflected in their bills.
The revised tax bills pertain to the financial year July 1, 2025, to June 30, 2026, with taxpayers directed to make payments by September 30, 2025.
A special concession has been introduced as those who settle their dues by the deadline will receive a 5% discount. However, from October 1, a strict recovery drive will be launched, targeting defaulters.
The department aims to collect 30% to 40% of its annual target within the first quarter of the financial year. From October onwards, enforcement measures will include property seizures and arrests of non-compliant individuals.
Additionally, the Rawalpindi Deputy Commissioner (DC) has approved an increase in DC (District Collector) property valuation rates across most areas of the district by 10% to 25%. In nearly two dozen upscale localities — including Union Kotha Kalan I and II, and neighbouring high-income areas — the official valuation rates have seen a dramatic increase of 300% to 500%.
The Excise Department has now shifted from its previous calculation method to a new system based on the updated DC rates, leading to what is being described as the highest property tax rise in the nation's history for both residential and commercial sectors.
The business community has strongly condemned the move. Local traders have branded the increase as "extortion in the name of taxation" and have announced their refusal to comply.
Ghulam Qadir Mir, President of the Anjuman-e-Tajiran, Sabzi Mandi, stated that by law, the annual increase in property tax should not exceed 10%, and any hike beyond that is unlawful and unacceptable. He warned of widespread protests and a legal challenge in the Lahore High Court (LHC), insisting that no shopkeeper could be expected to pay taxes exceeding their income.
In line with directives issued by the ITO Excise, property tax bills must be delivered to all taxpayers across the division by August 31. The department is also verifying delivery through WhatsApp calls, confirming receipt with property owners.
Strict instructions have been issued for the 1 October recovery operation to proceed without exceptions or leniency.
The Director-General of Excise, expressing deep dissatisfaction over a 48% shortfall in last year's property tax revenue, has ordered all officers in the Rawalpindi Division to exceed their revenue targets in the current financial year.
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