Authorities in Rawalpindi plan to increase property taxes starting January 1, 2025, which has raised concerns among property owners.

Beginning next year, five-marla properties will also be subject to taxes. The Department of Excise, Taxation, and Narcotics Control has revealed new tax rates after receiving approval for updated property tax regulations.

The deputy commissioner has released revised DC rate lists for both residential and commercial properties for the 2024-25 financial year.

Due to the financial crisis in Punjab, DC property rates have surged by as much as 300 percent, a significant jump compared to the typical 10 percent annual increase in property rates, reflecting the severe economic difficulties in the area.

The excise department has begun new tax assessments in upscale and middle-class neighborhoods throughout the Rawalpindi Division, using the updated DC rates. Property owners can expect to receive new tax bills between September 15 and October 15.

The distribution of these bills is anticipated to be completed by December 15, with the new rates taking effect on January 1, 2025.

Sources suggest that these updated property taxes will impose a significant financial strain on property owners, many of whom will face considerable increases in their tax obligations.

Typically, the DC rate increases by about 10 percent each year, but this year’s hike ranges from 20 percent to 300 percent, depending on the area.

In response to these changes, the property tax structure has been revised to create four taxpayer categories: A-plus, A, B, and C. Additionally, four new categories have been introduced for commercial areas to accurately reflect their economic status.

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To enhance tax collection efficiency, the excise department has expanded its operational zones in Rawalpindi from four to five. Director General Excise Faisal Farid has also instructed officials to meet property tax collection targets on a quarterly basis.