Property tax utilisation and equity in Punjab: Policy challenges and reform options
This policy brief explores some of the challenges related to Punjab’s property tax, analyses their implications for tax utilisation and equity, and examines future policy directions.
Authors
Naveed Ahsan
Team Leader, UIPT, The Urban UnitMuhammad Ahmad Amin
Project Manager, MHRC, Lahore University of Management Sciences
Michael Best
Assistant Professor, Columbia University
Michael Callen
Associate Professor of Economics, London School of Economics and Political Science (LSE)
Ali Cheema
Associate Professor of Economics, International Growth CentreAhsan Farooqui
Senior Programs Manager, IDEASShandana Khan Mohmand
Research Fellow, Institute of Development Studies
Adnan Khan
Professor of Practice, London School of Economics and Political Science (LSE)
Muhammad Omar Masud
Chief Executive Officer, The Urban Unit-
Abbas et al Policy brief December 2022.pdf
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- Currently, Punjab is struggling to meet its urban citizens' local service delivery needs. There are significant deficits in areas such as access to clean water, sanitation, local public transport, affordable housing,
and pollution. - Punjab’s demographic transformation led to a rise in property values, which offers an opportunity to use property tax as an instrument of sustainable financing to meet the growing public service needs.
- The contribution of property taxes in Punjab at 0.05% of GDP is much lower than the average for low- and middle-income countries (LMICs). We analyse and compare the average tax rates for property holders occupying properties of different values in Lahore and find that
these fall as the assessed values of properties increase within tax
value bands. - This policy brief explores some of the challenges related to Punjab’s property tax, analyses their implications for tax utilisation and equity, and examines future policy directions.