The Punjab government has decided to include rural housing schemes in the tax net as part of a new local government policy aimed at tightening regulations around land development.
According to sources, land developers previously exploited rural areas to avoid taxation. To address this, taxes will now be imposed under the Urban Immovable Property Tax Act 1958. The proposed bill is designed to align with the Punjab Finance Act 2024.
The tax scope will also be expanded in urban areas, where all immovable properties within municipal limits will be subject to taxation. The tax amount will be determined based on property value and other criteria.
A designated authority under the Punjab government will handle tax collection, and the revenue will be transferred to local governments for regional development and improvements.
The proposed bill has been submitted to the relevant committee in the Punjab Assembly, which is expected to present its report within two months.