Unrealistic property valuations based on outdated DC rates place an unfair burden on middle- and lower-income homeowners across Punjab.
LAHORE, The recent move by the Punjab government to impose property tax based on Deputy Commissioner (DC) rates has triggered widespread concern among citizens and real estate stakeholders. Experts warn that the decision to use artificially inflated DC rates—often disconnected from actual market values, will impose an unjust financial burden on property owners, especially those in the middle and lower-income brackets already grappling with inflation and stagnant wages.
The arbitrary nature of DC rate assessments fails to account for regional economic disparities, resulting in taxation that is not only unfair but also economically damaging. Urban hubs like Lahore, Multan, and Rawalpindi, along with smaller cities such as Dera Ghazi Khan, could experience a dip in housing affordability, real estate investment, and overall market stability.
Industry analysts and citizen groups are urging the provincial government to revisit this approach. They recommend establishing a more transparent, realistic property valuation model that reflects current market dynamics and is developed through consultations with real estate experts and taxpayer representatives.
Unless revised, this tax policy risks further alienating investors and homeowners, ultimately harming Punjab’s real estate and economic growth. Fair taxation must be grounded in actual data, not arbitrary estimates.