The Punjab government has made payment of the garbage tax compulsory for property transactions starting this month, in a move aimed at improving recovery of the sanitation fee.
According to excise department officials, no no-objection certificate for the purchase or sale of property will be issued until both property tax and sanitation fees have been paid.
Earlier, the NOC process only required clearance of property tax.
Officials said the Excise, Taxation and Narcotics Control Department decided to ensure payment of the sanitation fee after being assigned the responsibility of collecting the garbage tax under the Suthra Punjab Programme.
The new system aims to link recovery of the two taxes and ensure that all outstanding dues are cleared before a property transaction is completed.
Officials said more than Rs82 billion is expected to be collected from over five million properties across Punjab, including Lahore.
The garbage tax target for the current financial year is Rs40 billion, while more than Rs42 billion is expected from property tax.
The monthly sanitation fee will vary according to the size and type of property.
Urban residential properties of up to five marlas will be charged Rs300 per month, while properties between five and 10 marlas will pay Rs500.
The fee will be Rs1,000 for properties between 10 and 20 marlas, Rs2,000 for those between 20 and 40 marlas, and Rs5,000 for properties larger than 40 marlas.
For commercial properties, the monthly fee will be Rs500 for small businesses and shops, Rs1,000 for medium-sized businesses and Rs3,000 for large businesses and factories.
The Excise Department will issue consolidated bills for the sanitation fee.
Bills for July, August and September are being distributed in October, and taxpayers will have to clear their dues by October 31.
Informal settlements and slum areas are generally exempt from the sanitation fee.
Officials said the new property clearance requirement will come into force this month to improve collection and ensure full recovery from property owners.
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