The Punjab government has taken a significant step towards improving the local government system by introducing a tax on immovable property under the new Local Government Amendment Bill 2024. This move aims to generate revenue for local governments, enabling them to develop and improve their areas.
Key Features of the Tax
- Properties Affected: The tax will be imposed on residential, commercial, and other immovable properties in urban areas, as well as housing schemes in rural areas .
- Assessment Criteria: The tax will be assessed based on the property’s value and other criteria.
- Revenue Allocation: The revenue collected from this tax will be transferred to the local government, allowing them to utilize it for development and improvement purposes.
The tax is being introduced under the Citizens’ Immovable Property Tax Act 1958, which provides the framework for levying taxes on urban immovable property in the Punjab province . The Punjab government has forwarded the bill to the relevant committee in the Punjab Assembly, which is expected to submit a report within two months.
This move is expected to have a significant impact on the local government system in Punjab, enabling local governments to generate revenue and improve their areas. However, it remains to be seen how the tax will be implemented and what its effects will be on property owners and the local economy.
