The Punjab government has expanded the property tax net to include home-based tuition setups, academies and coaching centres operating in residential areas.
The move comes after an amendment to the Punjab Private Educational Institutions Act 2026, under which home tuition centres, small coaching centres and neighborhood academies will now be recognized as private educational institutions.
Under the amended law, properties used for these educational activities will be subject to property tax, while their electricity and water connections will be treated as commercial.
Small private schools operating from residential properties will also fall under the new tax regime, regardless of whether they are registered with the relevant authorities.
The amendment has drawn criticism from the All Pakistan Private Schools Colleges Association, which has called for the changes to be withdrawn.
The association said the new rules could particularly affect women and girls who provide tuition to a limited number of neighborhood students from their homes as a source of additional household income.
It further argued that treating small home-based tuition setups as commercial establishments could increase property and utility costs and place an additional financial burden on low-income families.
The association has urged the Punjab government to reconsider the amendment and withdraw commercial taxes and property-related charges applicable to home-based tuition centres.
