WHAT IS A PROPERTY TAX?

Property tax in Pakistan is a provincial tax levied on annual rental value of the property, based on Urban Immovable Property Tax Acts of respective provinces. Tax rates are different for every province. It is either a flat rate, or a percentage of the annual rental value. Rental value does not mean that the property has to be rented out. It simply gives an assessed value by the government of how much rent would be generated, had the building been let out. For each province, rate of taxation differs depending on whether the property is rented out or self-occupied.

According to Excise, Taxation & Narcotics Control Department, Punjab, there is a 5% annual rental value that is levied as tax. Annual rental value is determined by assessing properties based on their type – residential or commercial, locality and whether it is rented or self-occupied. As per the Excise, Taxation & Narcotics Department Sindh, it doesn’t matter whether the property is rented out or not. The tax is levied at a rate of 25% of the annual rental value of the property. For a comprehensive breakdown of property taxes, you can check out our blog on

DIFFERENT TYPES OF PROPERTY TAXES IN PAKISTAN

Following are the different types of property taxes in Pakistan:

• Capital Gains Tax (CGT)
• Capital Value Tax (CVT)
• Stamp Duty
• Withholding Tax or Advance Tax