Real estate dealers and citizens reject the new tax and consider it an additional burden on taxpayers
RAWALPINDI:
A 16 per cent general sales tax (GST) was imposed on all rented properties in Rawalpindi district and the rest of Punjab, triggering strong reactions from citizens and property stakeholders.
Under the new measures, all non-residential buildings and rented real estate properties across the province will be subject to a 16% GST from July 1.
For taxpayers registered before January 1, 2025, a 20% limit will apply to the capital value assessment under the property tax system.
A 5% discount will also be available on property tax payments made under the self-assessment scheme.
Major changes have also been introduced in Punjab’s property tax system, including payment through 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 surcharge amount will increase annually on October 31, January 31, April 30 and July 31.
The tax will also apply to smaller houses rented by their owners.
Representatives of the Association of Real Estate Dealers and citizens rejected the tax, calling it unfair. Association secretary Naveed Ali said the excise department was already collecting tax on commercial and domestic rented properties and the additional GST was unacceptable.
Citizens Nasir Khan and Amjad Ali Shah said the government was not leaving any road tax-free and demanded immediate withdrawal of the measure.
They said many pensioners buy a house with their savings to generate rental income, and imposing GST on such properties was unfair.
Meanwhile, the government has also increased the token tax on commercial transport vehicles, including vans and trucks, as well as vehicles with an engine capacity of 1,000 cc or more, in an effort to increase revenue collection.
