A 16 per cent General Sales Tax (GST) has been imposed on all rented properties across Rawalpindi district and the rest of Punjab, drawing strong reactions from citizens and property stakeholders.

Under the new measures, all rented non-residential buildings and immovable properties across the province will be subject to a 16pc GST from July 1.

For taxpayers registered before January 1, 2025, a 20pc cap on capital value assessment will apply under the property tax system.

A 5pc discount will also be available on property tax payments made under the self-assessment scheme.

Significant changes have also been introduced in Punjab’s property tax system, including payment through the E-Pay Punjab electronic payment platform.

In case of non-payment, additional surcharges will be imposed every three months along with the original tax liability. The surcharge amount will increase annually on October 31, January 31, April 30 and July 31.

The tax will also apply to smaller houses rented out by owners.

Property Dealers Association representatives and citizens rejected the levy, describing it as unjust. Association Secretary Naveed Ali said the excise department was already collecting taxes on commercial and domestic rented properties, and the additional GST was unacceptable.

Citizens Nasir Khan and Amjad Ali Shah said the government was leaving no avenue untaxed and demanded immediate withdrawal of the measure.

They said many pensioners purchase a house from their savings to generate rental income, and imposing GST on such properties was unfair.

Meanwhile, the government has also increased token tax on commercial transport vehicles, including vans and trucks, as well as vehicles with engine capacities of 1,000cc and above in an effort to increase revenue collection.