Now the value of your house will be fixed by the DC of the district

The Punjab government has unveiled a new property tax system aimed at simplifying the process, eliminating complexities, and increasing transparency. According to Masood Mukhtar, Secretary of Excise, Taxation, and Anti-Narcotics, the new system, which came into effect on January 1, 2025, will see property tax assessments determined based on the district’s Deputy Commissioner (DC) table, rather than the previous system based on rental value.

Key changes in the new system

Under the new framework, property tax will now be assessed based on the market value of the property, not rental income. Property owners will have the discretion to estimate the value of their property, and this self-assessed value will be considered accurate for tax purposes.

Significance of the reform

This marks a major overhaul in property tax assessment after 65 years, designed to streamline the process, ensure consistency, and enhance transparency. The government emphasised that these changes are intended for the benefit of the public and should not be viewed as an additional financial burden.

Incentives for taxpayers

Under the new system, current taxpayers will not be subject to any additional tax liabilities until June 30, 2025. Furthermore, individuals newly brought into the tax net will receive a 50% discount on their dues. New taxpayers will be required to pay only 25% of the tax amount for the first six months.