THE imposition of property tax in Punjab based on the deputy commissioner (DC) rates is a matter of serious concern. It is deeply regrettable that the provincial government has chosen to use artificially inflated DC rates as the basis for determining property tax. These rates, oftennot reflective of actual market value, are arbitrarily fixed without considering the real socioeconomic dynamics of different regions. This has led to an unreasonable tax burden, especially on middle-income and lower-income property-owners many of whom are already reeling from inflation and stagnant incomes.
The imposition of property tax at such inflated rates will discourage investment in real estate. Urban centres, like Lahore, Rawalpindi and Multan, as well as smaller cities, like Dera Ghazi Khan, are likely to witness a decline in housing affordability and commercial sustainability if such practices persist. The Punjab government should reconsider the decision, and adopt a more realistic and transparent property valuation mechanism that aligns with actual market trends. This should be done in consultation with stakeholders, and with fairness for all taxpayers being the target.
