Real estate agents and citizens reject the new tax, describing it as an additional burden for taxpayers
RAWALPINDI:
A 16 percent general sales tax (GST) has been imposed on all rented properties in Rawalpindi district and the rest of Punjab, drawing strong reactions from citizens and real estate stakeholders.
Under the new measures, all rented non-residential buildings and real estate across the province will be subject to a GST of 16 per cent. from 1 July.
For taxpayers registered before 1 January 2025, a ceiling of 20 per cent applies. for capital valuation under the property tax system.
There will also be 5 per cent. discount on property tax payments made under the self-employment scheme.
Significant changes have also been introduced in Punjab’s property tax system, including payment through the electronic payment platform E-Pay Punjab.
In the event of non-payment, additional surcharges will be imposed every three months along with the original tax liability. The supplement increases annually on 31 October, 31 January, 30 April and 31 July.
The tax will also apply to smaller houses rented out by owners.
The representatives and citizens of the Property Dealers’ Association rejected the tax and described it as unfair. Association secretary Naveed Ali said the excise department was already collecting taxes on commercial and domestic rented properties and the additional GST was unacceptable.
Citizens Nasir Khan and Amjad Ali Shah said the government was leaving no road untaxed and demanded immediate withdrawal of the measure.
They said many retirees buy a house from their savings to generate rental income and imposing GST on such properties was unfair.
Meanwhile, the government has also increased token tax on commercial transport vehicles, including vans and trucks, as well as vehicles with engine capacity of 1,000 cc and above in a bid to raise revenue.
