Citizens protest steep property tax hike

The Excise, Taxation and Narcotics Control Department has sent sharply increased property tax bills to citizens in Rawalpindi, extending the tax net to even small residential units that were previously exempt.

Property owners of two to three-marla houses have now received bills ranging from Rs3,500 to Rs4,000.

The tax collection drive has intensified, with excise offices ordered to remain open today (Sunday) across Punjab.

Citizens already in the tax net have reported hikes of Rs10,000 to Rs30,000 in their bills, leading to protests.

The provincial government has raised its annual property tax target from Rs55 billion to Rs70 billion.

Previously, the Pakistan Tehreek-e-Insaf (PTI) government under Usman Buzdar had exempted five-marla houses and properties owned by widows, but the relief has now been withdrawn.

Citizens like Haji Ibrahim and Chaudhry Imran said they would challenge the new tax notices in court, calling the move "oppressive."

In August this year, the Excise, Taxation, and Narcotics Control Department enforced an unprecedented 50 per cent 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 pertained 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 per cent discount. However, from October 1, a strict recovery drive was said to be launched, targeting defaulters.

The department aimed to collect 30 per cent to 40 per cent 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 DC has approved an increase in DC (District Collector) property valuation rates across most areas of the district by 10 to 25 per cent. 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 per cent.