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The Punjab government is set to begin garbage tax collection from both urban and rural areas starting July 1, 2025, under the Rs200 billion Suthra Punjab initiative aimed at improving waste management and sanitation services across the province.
According to official sources, local bodies have begun preparing strategies for tax recovery to ensure the project’s success. The Punjab Cabinet Standing Committee on Finance and Development has already approved the comprehensive tax collection plan.
Launched by the provincial government upon assuming office, the Suthra Punjab project focuses on providing organized waste disposal services in both cities and villages. Waste management companies and local authorities have purchased machinery and initiated door-to-door garbage collection in several districts, including Lahore. However, delays in implementation have prevented full coverage across the province.
With the deadline approaching, authorities have been directed to complete all arrangements for garbage tax collection by July 1. The new levy will apply to residential and commercial properties across Punjab, with different rates set for rural and urban areas.
Punjab Garbage Tax Rates for Rural and Urban Areas
In rural residential areas, houses measuring 2 to 5 marla will be taxed Rs200 per month, while 10 marla or larger homes will pay Rs400. Rural small businesses will be charged Rs300, medium businesses Rs700, and large enterprises, including factories and industries, Rs1,000 per month.
Urban areas will face higher rates. Homes up to 5 marla will be charged Rs300 per month, 5 to 10 marla Rs500, 10 marla to 1 kanal Rs1,000, 1 to 2 kanal Rs2,000, and homes larger than 2 kanal Rs5,000. In commercial zones, shops will be taxed Rs500, medium businesses Rs1,000, and factories and large enterprises Rs3,000 monthly.
However, residents of informal settlements in Lahore and other parts of Punjab will be exempt from the garbage tax.
Local Government Secretary Mian Shakeel Ahmad confirmed that the initiative, directed by Chief Minister Maryam Nawaz Sharif, aims to deliver city-level sanitation services to rural areas as well. Door-to-door garbage collection is already underway, and service charges will be implemented province-wide starting next month.
Lahore Waste Management Company (LWMC) CEO Sahibdin Babar noted that an advanced sanitation system is already operational in Lahore. He confirmed that from July 1, LWMC will begin collecting service charges from residents and businesses in exchange for waste collection and disposal services.
