Property sale NOC linked to sanitation fee payment

The new requirement comes after the government began billing urban property owners under the Suthra Punjab programme this month. The excise, taxation and narcotics control department has been assigned the responsibility for billing and collecting the sanitation fee from around five million residential and commercial properties in urban areas.

Under the mechanism, two bills will be issued during a six-month period towards the annual sanitation fee liability. Property owners will have 60 days from receipt of a bill to make payment, with late payments subject to penalties.

The government expects to collect around Rs40 billion annually through the sanitation fee. Data integration between the excise department and Suthra Punjab programme has been completed, allowing sanitation fee records to be linked with property data.

The integration has also resulted in the NOC condition being introduced before completion of the province-wide bill distribution. Previously, payment of property tax was required before the NOC could be issued. The requirement has been extended to include payment of the sanitation fee.

The development has raised concerns for property owners whose sanitation fee bills have yet to be delivered. The government had approved monthly sanitation charges ranging from Rs300 for residential properties measuring up to five marla to Rs5,000 for over 40 marla.

Commercial properties are subject to charges ranging from Rs500 to Rs3,000 depending on their size. The excise department is collecting the sanitation fee alongside property tax. Inspectors in the relevant excise circles have been tasked with delivering the bills to property owners.