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Property tax will now be based on rental value instead of area, and no extra tariffs will be imposed on the real estate backdrop of the province, according to a statement by Punjab’s Minister of Finance, Makhdoom Hashim Jawan Bakht, during a meeting of the Ministerial Committee for Resource Mobilization for the year 2021-2022.

Regarding the property tax associated with local governance, the minister explained that “taxes collected at the local level will be used for delivering municipal services in the collection area while the municipal services will be defined in the Local Government Act before the new tax laws apply”.


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The Finance Division will also consider closing the gap between personal and rented commercial property eventually, for which the Minister for Industry and Commerce, Mian Aslam Iqbal, pointed out that property owners receive annual increment on their rent but avoid paying extra tax through illegal means, which “needs to be checked and discouraged”.

In addition to addressing the province’s complex web-work of real estate etched across various districts, the Minister of Finance made special mentions for the Punjab Excise and Taxation Department to make the fee for vehicle registration equal to the fee collected in the capital.


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Besides Punjab’s Minister of Finance in the chair and Minister Iqbal, the meeting was attended by high ranking officials of the provincial government including the Minister for Agriculture, Hussain Jahanian Gardezi; the Minister for the Punjab Board of Revenue, Malik Anwar; and the Minister for Irrigation, Mohsin Leghari, among others.

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