The Punjab government has proposed raising taxes, stamp duty, and court costs on urban immovable assets based on their capital value (DC rate) rather than rental value. This suggestion was made by Mian Mujtaba Shuja-ur-Rehman, the provincial finance minister, in the Finance Bill for the fiscal amendments year 2024–25.
Under the proposed changes, the government may designate any property as high value. Authorities will become able to audit self-assessed property values, and underpayment or tax evasion may result in fines.
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The Finance Bill also proposes amending the Motor Vehicle Taxation Act of 1958, introducing a lifetime token tax of Rs 1,500 on motorcycles and scooters, with a 10% refund if the vehicles are sold within ten years.
The modified Punjab Urban Immovable Property Tax Act of 1958 will now collect property tax based on capital value (DC rate) instead of rental value. Commercial properties of the same value will be subjected to a 0.07% tax, while residential properties valued up to Rs 5 million will be exempted from tax. The tax rates on higher-value homes will increase from 0.07% to 0.09%.
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Additionally, the measure suggests basing car token tax collection on the invoice value rather than engine power.
