In a major development, Punjab Government recently announced a 5% hike in property tax on houses, flats, and shops. This hike will be considered effective from April 1, 2025.
As per reports, the decision will be applicable to all residential houses, flats, and commercial buildings (excluding multiplexes) across Urban Local Bodies (ULBs) in the state. The revised rates will be calculated based on the existing tax structure.
As per repots, this decision has been taken by aligning with the Government of India’s mandate to access additional borrowing limits and funding under centrally sponsored schemes of the Ministry of Housing and Urban Affairs (MoHUA).
As per reports, residential properties measuring more than 125 square yards will be liable to pay property tax.
The increase of 5% is aligned with the Urban Local Bodies Act, which allows for an annual increment of up to 0.25% of the total annual property value.
The municipal corporations and committees have been instructed to start collecting tax as per the revised rates from the beginning of the next financial year.
The government has also planned awareness campaigns to ensure citizens understand the new structure and comply accordingly.
Property tax will be applicable on:
Residential homes and flats
Commercial properties including shops, restaurants, private hospitals, hotels, schools, social clubs, and coaching centres.
Citizens can make payments through the government’s online portal by logging in with their mobile number, name, and city details.
Taxpayers can view, calculate, and pay their dues online and even download their receipts.
Additionally, offline payments can be made at municipal offices.
In municipal categories, properties over 125 square yards and flats above 50 square yards will be taxed.
However, if the property is above 60 square yards and has a double storey, it will also be considered liable for property tax.
As per reports, property tax is determined based on the collector circle rate because the market value differs from city to city and area to area.
Depending on how expensive the area is, tax is levied on the building or flat accordingly.