The Punjab government has introduced a 16% General Sales Tax (GST) on rented properties across Rawalpindi and the rest of the province under a new fiscal policy, effective from July 1.
According to the policy, all rented non-residential properties and other immovable assets will fall under the new GST regime at the prescribed rate of 16%.
Alongside this measure, revisions have also been made to the provincial property tax system. For taxpayers registered before January 1, 2025, a cap of 20% on capital value assessment will be applied under the revised framework.
The government has also introduced a 5% discount on property tax payments made under the self-assessment scheme to encourage timely compliance.
Further reforms include the rollout of digital tax payment facilitation through the E-Pay Punjab platform, aimed at improving efficiency and streamlining tax collection processes.
In case of non-payment, quarterly surcharges will be imposed in addition to the original tax liability, with penalties increasing on October 31, January 31, April 30, and July 31 each year.
Officials stated that the new GST will also apply to smaller residential properties that are rented out, as part of broader efforts to expand the tax base and improve documentation in the property sector.
The policy has been officially notified across the province and will come into effect from July 1.
