The Punjab government has announced a series of new tax measures that will take effect from July 1, bringing changes for property owners, tenants, and vehicle owners across the province.
Under the revised taxation framework, a 16% General Sales Tax (GST) will be imposed on rented non-residential properties. The tax will apply to a wide range of commercial rental units, including smaller properties that were previously outside the scope of similar measures.
Authorities have also introduced several changes related to property taxation. Taxpayers who were registered before 2025 will be eligible for a 20% cap on capital value, while individuals who submit taxes through self-assessment will receive a 5% discount as an incentive for compliance.
In addition, all tax payments will now be required through the E-Pay Punjab system, as the government moves toward greater digitalization of public services. New quarterly penalties have also been introduced for individuals who fail to pay taxes on time.
Vehicle owners will also be affected by the changes. Token taxes on commercial vehicles and cars with engine capacities above 1000cc have been increased, resulting in higher annual costs for many motorists.
Government officials say the measures are intended to improve tax collection, strengthen financial management, and expand the tax base. They argue that the reforms will help generate additional revenue for public services and development projects.
However, the announcement has received criticism from citizens, business owners, and property stakeholders. Many have expressed concerns that the additional taxes and charges could increase financial pressure on households and businesses already facing rising living costs.
The new measures are expected to become fully operational from July 1, with authorities encouraging taxpayers to comply with the updated regulations.