5 Marla houses in Punjab will now tax on a rental policy. And the proposal has already sent to the Punjab government for the implementation of property tax.
Finance Minister Hashim Jawan Bakht: that the 5-marla exemption from property taxes was unjustified. And the levy should be based on the value of a house. The minister made this statement as he presided over a meeting of the Punjab Finance Department Resource Mobilization Committee for FY2020-21.
As Bakht stressed the importance of revising the 1958 Act to improve property tax collection in the province. And The Punjab government is working towards promoting profitability in taxation. And to improve collections, tax rates should reduce rather than increased, he suggested.
Therefore, PKR 2.2 billion in tax exemptions is given every year to owners of at least 2,300,000 5-marla houses in the province, according to sources in the Excise and Taxation Department,. And of these units, approximately 1,500,000 are located in Lahore, where houses in areas falling under the A-Category do not benefit from this exemption.
Property Tax Proposal
The excise department has submitted a proposal to the government.
To impose a tax on rentals from 5 marla houses in each category area. Wherefrom the next financial year instead of levying tax from A category area.
All small houses will now be subject to rental tax instead of quorum. In this regard.
The excise officials said that the rates of all the rating areas throughout Punjab are accessible through the excise.
Property tax will now be collected from all houses which are 5 marlas. Previously, property tax is collected from only houses which are over 5 marlas activated in A-Category.
owners of homes earning more than Rs.225,000/- The tax department has sent a proposal to the government for approval.
Ultimately, the decision on tax implementation will made by the government.