A new garbage tax in Punjab, set to take effect from tomorrow (July 1), has triggered widespread outrage among citizens and social organisations across the province, who argue the move will unduly burden already struggling households and small businesses.
The Punjab government has rolled out a detailed fee structure for the garbage tax in Punjab, which will be collected monthly under strict enforcement by Waste Management Companies, Municipal Corporations, Committees, and District Councils. Official bills will be dispatched, and failure to pay could even result in police action.
For rural areas, the garbage tax will see monthly rates of Rs200 for two to five marla houses, Rs400 for 10 marla and above, Rs300 for small shopkeepers, Rs700 for medium businesses, and Rs1,000 for large businesses or factories. In urban zones, the tax will start at Rs300 for up to five marla houses, increasing to Rs5,000 for properties exceeding two kanal. Commercial establishments will be charged Rs500 for a single shop, Rs1,000 for medium businesses, and Rs3,000 for factories and industries.
This sweeping move has drawn harsh criticism. Social organisations and citizens argue the government should slash extravagant expenses instead of levying more taxes. Malik Zaheer Awan, Chairman of the Citizen Action Committee, lambasted the Punjab Chief Minister’s office for allegedly consuming biscuits worth Rs2.14 billion annually—excluding other food expenses—and urged redirecting such funds to sanitation.
He also pointed to an alleged Rs10 trillion lost to corruption in Punjab within a year, insisting recovery of these funds could resolve pressing issues like waste management, clean water, and sewage without imposing the garbage tax in Punjab.
Adding to the pushback, Malik Saleh Advocate from the Rawalpindi District Bar Association announced plans to challenge the tax in the Lahore High Court after securing the official notification.
On the other hand, MNA Engineer Qamarul Islam defended the measure, claiming it would modernise sanitation services and help transform Punjab into the “Paris of South Asia” for cleanliness.
The tax rollout coincides with the recent passage of Pakistan’s Rs17.6 trillion federal budget, which introduced Rs463 billion in new taxes. While this budget expanded tax laws to cover the digital economy, it notably weakened the single largest enforcement step against ineligible economic transactions.
Despite mounting criticism, Prime Minister Shehbaz Sharif’s coalition government easily passed its second budget, securing 201 votes against the opposition’s 57 during a key clause vote.