Any property of an area 2 kanal and above that has been categorized under a) the Punjab Urban Immoveable Property Tax Act, 1958 (V of 1958); (b) a cantonment under the Cantonment Act, 1924 (II of 1924); and (c) any other area within the Province as notified by the Government shall pay in addition to any tax charged under any other law a luxury property tax.
The following are the exceptions to the payment of luxury property tax
a) A residential house with completion of construction before the first day of January 2001.
b) An existing residential house which is owned by a person on the basis of opening of inheritance before coming in force of this Act.
c) A residential house or part thereof, owned by a widow by way of inheritance and used for her permanent residence, provided that if the widow owns more than one residential house liable to tax, she shall be entitled to exemption only in respect of one residential house.
d) Residential house used for some other permissible use after compliance with applicable law and during such period of compliance.
Any person who fails to pay the luxury property tax shall in addition to the amount of the tax be liable to pay default surcharge at the rate of one percent per month of the amount of tax due under this section.
