The Punjab government has imposed a new “waste tax” across all cities and towns in the region. The Standing Committee on Finance and Development of the Punjab Cabinet gave a nod to the decision.

According to the notification, the waste tax will be levied on both rural and urban residents, as well as small and large businesses in the province. The tax will be applied based on the size of the residential properties and the scale of commercial operations.

For rural areas, a monthly waste tax of Rs200 would be charged for houses ranging from 5 to 10 marlas while larger properties between 10 marlas and 1 kanal would be taxed Rs400 per month. Small businesses and shops in rural areas would be taxed Rs300 while medium-sized enterprises would pay Rs700. The larger businesses, factories, and petrol pumps would be charged Rs. 700 per month.

The notification further states that residents of informal settlements (kachi abadis) will also be subject to the new waste tax.

The waste tax rates in Lahore have been increased in urban areas compared to the rural areas. For urban residences, the new monthly waste tax rates are as follows: homes up to 5 marla (125 sq m): Rs300, homes between 5 to 10 marla (125-250 sq m): Rs500, homes between 10 marla to 1 kanal (250-500 sq m): Rs2,000, and homes larger than 1 kanal (500 sq m): Rs5,000.