The Punjab government has decided to introduce a new indirect tax by privatizing the sanitation system across the province.
According to reports, contractors awarded the contracts for garbage collection in 110 tehsils across 36 districts will also be responsible for collecting the new garbage tax. This plan has been approved by the provincial cabinet’s Committee on Finance and Development.
The garbage tax will apply to all businesses—both small and large—as well as residents of both rural and urban areas, including slums.
In rural areas, the tax will be Rs200 per month for houses ranging from 5 to 10 marlas, Rs400 per month for houses from 10 marlas to one kanal or larger, Rs300 per month for small businesses and shops, and Rs700 per month for medium-sized businesses.
Larger businesses, factories, and petrol stations will face a higher tax rate.
Property tax receipts traditionally serve as a primary revenue source for local governments, funding essential services such as garbage collection, sewer systems, water supply, road construction, and fire services.
Over the past few decades, some urban centers have begun charging citizens for sanitation and water supply services. Now, a paid system for garbage collection is also being introduced.
