Punjab Property Tax Relief (Large Units)

Under Clause 12.9 of the Industrial and Business Development Policy 2022 of Punjab, a large unit pays only half the property tax otherwise due on its premises, and this concession runs for seven years counted from the date commercial production begins.

Manufacturing alone qualifies. Service industries are shut out by the policy in explicit terms — tourism and hospitality, entertainment, cinema halls, multiplexes, healthcare, education services and the retail sector.

Because property tax is a fixed recurring charge, it stays the same even when a plant operates below its capacity. A 50% reduction spread over seven years therefore carries the greatest value during the initial years, when a new unit is still building up its volumes.

1. Have the project recognised as an eligible large unit under the Industrial and Business Development Policy 2022. 2. Note the date of commercial production, since the seven-year relief period is counted from that date. 3. File the property tax exemption request through the Invest Punjab Business First portal, and with the local body wherever this is required. 4. Enclose the project approval, particulars of the premises, and evidence of commercial production. 5. The exemption appears in the municipal property tax demand for the years that qualify.

The process is non-competitive. The department first establishes that the unit qualifies as an eligible large unit and does not fall within the excluded service sectors, then verifies the date on which commercial production began. Once these checks are complete, the 50% relief is applied against the property tax demand.