Property transactions across Punjab have come to a standstill after authorities made the payment of the new garbage (sanitation) tax a condition for issuing a No Objection Certificate (NOC). The requirement was imposed before distribution of the tax bills had been completed.
According to Excise Department sources, citizens cannot obtain an NOC for buying or selling property without clearing the sanitation fee. With NOCs not being issued, property deals have effectively stopped.
Sources said around 5 million bills will be distributed across Punjab, including Lahore, by the end of this month. The annual sanitation fee will be collected in two instalments over six months, and two bills will be sent to each property owner for this purpose.
The department said NOC issuance has been suspended even before the bills reach citizens, due to data integration work. Previously, an NOC was withheld only if the property tax had not been paid.
The Punjab Excise Department began billing urban property owners for the Suthra Punjab sanitation programme on October 2, with bills going out to about 50 lakh commercial and residential properties.
The department has been assigned to handle billing for the programme and expects the fee to generate around Rs40 billion a year from urban properties.
Owners will receive six-month bills for the one-year fee and must pay within 60 days of receipt. Late payments will be accepted with a penalty. Officials said data integration between Suthra Punjab and the department is complete, and bills will be printed from urban unit data and delivered by inspectors in the respective circles.
