The Punjab government has imposed a 16 percent sales tax on the rental of commercial properties starting July 1, 2025, under a new framework introduced through the Punjab Finance Act, 2025.
The tax will apply to all Fixed Fee Invoices related to the rental of immovable property, excluding personal dwellings rented for residential use.
Previously, only services explicitly listed under the Punjab Sales Tax on Services Act, 2012, were taxed. However, the new law shifts from this “positive list” approach to a “negative list” model, meaning all services are now considered taxable by default unless exempted through the First Schedule of the Act.
Since the rental of immovable property (excluding residential use) is not included in the exemption list, it is now a taxable service under the jurisdiction of the Punjab Revenue Authority (PRA).
Accordingly, companies issuing Fixed Fee or rental invoices for commercial spaces will be legally obligated to charge and collect Punjab Sales Tax at 16 percent from July 1 onward.
Packages Real Estate (Private) Limited also announced this in a formal intimation letter to clients and partners, emphasizing compliance with the revised tax structure.
The issuing company clarified that the notice is based on the current understanding of the law and that any future amendments or clarifications from the PRA could further impact the tax treatment.
This is a significant change in the treatment of rental income under the Punjab Sales Tax regime. Commercial rents, now taxable at 16%, can prompt landlords to review their contracts, billing arrangements, and tax registrations.”.
Will be curious to see how this works in practice — particularly in the context of rent negotiations, invoicing, and tax burden. Would be interested to know how others in the sector are gearing up for this change.
“The recent imposition of 16% tax on rented properties as sales tax has raised concerns about the burden on taxpayers. Many citizens feel that the government is imposing taxes without providing sufficient facilities and services in return.
It’s essential for the government to strike a balance between taxation and public service delivery. Citizens expect infrastructure development, public services, and social welfare initiatives in exchange for their tax contributions.
Perhaps it’s time for a review of the tax structure and its impact on citizens, ensuring that taxation serves the greater good.”
Nonsense Punjab Government.
پراپرٹی ٹیکس کے ظلم کا پہاڑ تو اسی جون میں پہلے ہی توڑ چکے ہیں ۔
مرے کو مارے شہ مراد
اب یہ مزید برآں کسر رہ گئی تھی
اگر ہم نے غلطی سے کوئی چیز بنا لی ہے تو اتنے گناہگار ہوگئے ہیں ، کہ ٹیکس پر ٹیکس ۔
کوئی ان سے پوچھے کہ ہماری دکان یا فلیٹ بنانے میں گورنمنٹ کی کیا
contribution
۔ ہے
کہ اب وہ برابر کی ساجھے دار بن رہی ہے
Agar ksi nay galti se koi property bna li hai ,to us nay bohat bara gunaah e kabira kar dia hai .ghar ka nizaam chalana mushkil hai, akhrajaat pooray nahi ho rhay, ,annual property tax ,income tax with lawer charges ,labour tax , board tax,token tax,water tanker bills, monthly electricity bills with lots of taxes,gas bills ,maintance bills,
Itni ziada mehngai ,petrol mehnga ,groceries mehngi,
Bus Allah izzat ,maafi aur parday ke sath humein mout atta karay ,ameen.