Urban property taxes in Pakistan’s Punjab

Policy brief Cities and Cities that Work

  • Property tax is a significantly under-utilised tax instrument in Punjab, accounting for only 6% of the total provincial tax. With a population of over 100 million, all of Punjab collects less urban property tax than the city of Chennai in India, home to about 10 million people.
  • Punjab's cities have significant service delivery deficits. For example, only 35% of urban households in Punjab have piped water. These deficits will worsen in the absence of local financing that can be used to make public investments.
  • This policy brief outlines the current landscape of property taxation in Punjab, highlights the significance of this source of public finance, and frames future policy direction, particularly the trade-offs between various valuation systems.