Punjab Approves Garbage Tax for Homes and Businesses

The Punjab government has introduced a new garbage tax for both residential and commercial properties across the province. Moreover, a formal notification has been issued outlining the tax rates for different property sizes and types in both rural and urban areas.

This year’s budget came with lots of surprises, especially for middle-class and poor people. The newest bomb is the new tax imposed on the garbage! Yes, The Punjab cabinet has decided to introduce a garbage tax for all homes and businesses in the province. Moreover, this tax will help manage and outsource waste collection services.

Tax Rates

The proposed tax rates are as follows

Rural Areas:

• Small Houses (5 marlas): Rs200 per month
• Medium Houses (10 marlas to 1 kanal): Rs400 per month
• Small Businesses and Shops: Rs300 per month
• Medium Businesses: Rs700 per month
• Large Businesses: Rs1,000 per month

Urban Areas:

• Small Houses (5 marlas): Rs300 per month
• Medium Houses (10 marlas to 1 kanal): Rs500 to Rs2,000 per month
• Large Houses (more than 1 kanal): Rs5,000 per month
• Small Businesses: Rs500 per month
• Medium Businesses: Rs1,000 per month
• Large Businesses: Rs3,000 per month

In addition, businesses related to agriculture and farming will pay the tax at enhanced rates. According to the proposal, this tax will help the government manage the garbage and have effective ways to dispose of it to make the country clean.

Property tax receipts are the main source of revenue for most local governments to provide basic amenities, including garbage collection, sewer, water supply, road construction, fire brigade, etc., to the people. However, local governments in some urban centers began charging the citizens for sanitation and water supply services in the last few decades. And now a paid mechanism for garbage collection is also being introduced.

Implementation Of Garbage Tax

The tax will be effective after final approval from the Punjab cabinet. The government anticipates that the additional revenue generated from the garbage tax will be utilized to enhance waste collection, disposal, and recycling facilities in the province.

While the government anticipates that the tax will contribute to a cleaner environment. However, it remains to be seen how the public will react to this additional financial burden.