Real estate dealers and citizens reject the new levy, calling it an additional burden on taxpayers
RAWALPINDI:
A general sales tax (GST) of 16 per cent has been imposed on all rented properties in Rawalpindi district and the rest of Punjab, drawing strong reactions from citizens and real estate players.
Under the new measures, all non-residential buildings and rented real estate properties across the province will be subject to a 16% GST starting July 1.
For taxpayers registered before January 1, 2025, a cap of 20% on the capital value assessment will apply under the property tax regime.
A 5% discount will also be available on property tax payments made under the self-assessment scheme.
Significant changes have also been introduced in the property tax system of Punjab, including payment through the electronic payment platform E-Pay Punjab.
In the event of non-payment, additional surcharges will be imposed every three months on top of the initial tax payable. The supplement amount will increase each year on October 31, January 31, April 30 and July 31.
The tax will also apply to small houses rented by owners.
Representatives of the Real Estate Dealers Association and citizens rejected the levy, calling it unfair. Association secretary Naveed Ali said the excise department was already collecting taxes from rented commercial and domestic properties, and the additional GST was unacceptable.
Citizens Nasir Khan and Amjad Ali Shah said the government was leaving no room to evade taxes and demanded immediate withdrawal of the measure.
They said many retirees buy homes with their savings to generate rental income and imposing GST on such properties was unfair.
At the same time, the government also increased the nominal tax on commercial transport vehicles, including vans and trucks, as well as vehicles with an engine capacity of 1,000 cc and above, in a bid to increase revenue collection.
