RAWALPINDI: Residents of Rawalpindi Cantonment have been given relief on residential property taxes after negotiations between public representatives and a high-level committee of the Rawalpindi Cantonment Board.
Under the announced package, the proposed increase in residential house tax has been reduced from 30% to 20%. Residents will also be allowed to pay their taxes in three installments, while surcharges imposed on previous arrears under the Amendment Act 2023 have been waived.
The announcement was made on September 14, 2026, by Malik Ibrar Ahmed, Chairman of the National Assembly Standing Committee on Cabinet Division.
Residential Tax Increase Reduced
The revised measure lowers the planned increase for residential properties but does not bring house tax below previous levels. Homeowners will still face a higher tax liability than under the earlier rates, although the increase will be smaller than the originally proposed 30%.
The relief applies to residential properties. The 30% increase for commercial properties remains unchanged under the announced arrangement.
Arrears Surcharge Waived
Another significant component is the removal of surcharges on outstanding tax amounts linked to the Amendment Act 2023. The waiver could reduce the additional financial burden for residents who have accumulated arrears.
The three-installment payment facility is also expected to make it easier for homeowners to manage their annual tax payments rather than paying the full amount at once.
Additional Water Supply for Cantonment
The package also includes measures related to water availability. According to the announcement, Rawalpindi Cantonment is expected to receive 15 million gallons per day from Daducha Dam.
A Rs100 million grant has also been announced to support the conversion of tube wells and water storage facilities to solar power.
Combined supplies from Chahan Dam and Daducha Dam are expected to raise the cantonment’s clean water availability to around 50 million gallons per day once the relevant infrastructure and supply arrangements are operational.
Civic Facilities Also Addressed
The announcement included several other civic measures for Rawalpindi Cantonment, which has a population of roughly 800,000 residents.
Land allocated at Rakh Dhamial for a public graveyard is expected to receive dedicated ambulance and funeral bus services. Residents facing billing or municipal issues have also been advised to approach constituency offices for assistance with corrections and complaints.
Impact on Property Owners
For residential property owners within the cantonment area, the revised 20% increase represents a lower additional tax burden than the previously proposed 30% hike. The installment facility may also help households spread their payments over multiple installments.
However, residents should confirm the revised rates, effective date, arrears waiver, and installment procedure with the Rawalpindi Cantonment Board when the updated billing arrangements are implemented.
The timing of the additional 15 MGD water supply also depends on the progress of Daducha Dam and related infrastructure, so it should be viewed as a planned improvement rather than an immediate increase in available water.
