Understanding Property Tax Assessments in Pakistan

Govt. of Pakistan imposes tax obligations on the landlords and property owners in Pakistan. A property tax is the tax that’s levied on the assessed value of immovable property. This property may be raw commercial or residential land, buildings, and other infrastructure. It is an worthy source of revenue for local governments in Pakistan. The property tax is charged annually. Land Record and Revenue Department is official government body to collect taxes in Pakistan. The property tax is assessed value is determined by the provincial or federal govt. FBR. It takes into account various factors such as size, location, and other relevant aspects to assess property tax liability.

Who is Responsible For Assessing Property Taxes in Pakistan

The provincial bodies of Pakistan are responsible for assessing property taxes. The Excise & Taxation (E&T) officials bodies of the provincial governments that assess property Valuation Tables regularly. It also provides certain figures based on different measures for each province Punjab, Sindh, Balochistan and KPK. The property tax may vary for different cities within a province.

How is Property Tax Calculated in Pakistan

Property tax in Pakistan is calculate by math formula of multiplication the annual value of the property by the applicable tax rate. The yearly value of the property is the expected amount the property liable to pay. The amount would fetch if rented out for a year (12 calendar months). The rate of property tax also varies from province to province and can range. Normally, it increases or decreases from 0.5% to 2% of the assessed value of the property. Commercial properties in cities generally hold a higher tax rate than the residential properties.

How can I find out the Assessed Value of My Property

You can check out the estimated value of your property by reaching the E&T Department of your province. You can also find out the Valuation Tables published by the E&T Department on their website.

How Can I Pay My Property Tax

A property owner can pay his property tax at any designated branch of the National Bank of Pakistan (NBP). You will have to provide the Demand Notice that you got deliver from the E&T Department.

What are the Penalties of Not Paying Property Tax

If you fail to pay your property tax, then the E&T Department reserves right to impose a penalty on you. The penalty can be up to 100% of the outstanding tax amount.

Quick Tips For Property Tax

The estimated value of your property is not the same as its market value. The assessed tax valuation is typically lower than the market value.

A taxpayer reserves right to challenge the assessed value of your property. Suppose, you believe that it is too high, then you may file a petition with the E&T Department.

You are permit for a 5% rebate on your property tax if you pay it before the due date.

If you are unable to pay your property tax in full, you can request a payment lump sum from the E&T Department.


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