Senior business leaders, including those from FPCCI, have issued a strong call for fiscal reforms to prevent the collapse of the construction and housing industries. They demand the abolition of Sections 236C, 236K, 7E, and 7F and propose capping the maximum transaction tax rate at 0.5%. In a related development, the government is considering proposals to reduce property transaction taxes significantly and potentially abolish the 1% deemed income tax under Section 7E. These moves are seen as a response to mounting pressure from the industry to stimulate investment and activity.

The Punjab Excise, Taxation and Narcotics Control Department has implemented a major reform, replacing the 66-year-old Annual Rental Value (ARV) system with a new capital-value-based assessment regime effective January 2025. Under the new framework, tax is calculated based on official District Collector (DC) rates. Key features include a full exemption for residential properties valued up to PKR 5 million, a self-assessment mechanism for taxpayers, and a 5% discount offered for clearing dues by 31 August 2025 for the FY 2025-26. The reform aims to enhance transparency, broaden the tax base, and increase revenue.

Facing a significant 52% shortfall in property tax collection, the Excise and Taxation Department has directed officers to leave offices and perform field duties to improve compliance. Enforcement actions include sealing properties and a crackdown on defaulters starting from set deadlines. Furthermore, the department has explicitly brought all private housing societies, including those with units under construction, fully into the property tax net, with bills issued at revised DC rates leading to increases of up to 50% for some taxpayers. In a separate action, the FBR led a joint operation against major housing developers in Lahore for alleged tax issues.

The Excise & Taxation Housing Scheme in Lahore is listed as an LDA-approved society, having received approval on 04-08-1993. It is developed by the Excise & Taxation Employees Cooperative. The scheme appears in current real estate listings, with plots available for sale, indicating it is part of the active property market. An example listing shows an 8.5 Marla plot priced at PKR 1.79 Crore.