Punjab Property Tax Incentive (Expansion)

As per clause 12.2.2(c) of the Punjab Industrial Policy 2022, a manufacturing unit already in operation may apply for a Property Tax incentive when it carries out Expansion, whether or not that expansion involves modernisation or diversification. The incentive applies to the **additional covered area** the unit builds beyond its current covered area.

Certification of that additional covered area must come from the relevant Municipal Corporation. The benefit is capped at **100% of the Fixed Capital Investment (FCI)** incurred on the expansion. Since this is a tax incentive and not a cash payout, the unit receives it as a reduction in the property tax that would otherwise be levied on the newly constructed area. How much the unit actually gains therefore turns on its own FCI and the municipal rate that applies to it.

No rupee ceiling is prescribed under the policy. The upper limit is expressed only as a percentage of the unit's Fixed Capital Investment.

1. Apply via the Invest Punjab Business First portal, selecting the incentives available under the Industrial Policy 2022. 2. Secure certification from the relevant Municipal Corporation confirming the additional covered area beyond the unit's current covered area. 3. Provide evidence of the Fixed Capital Investment incurred for the expansion. 4. Furnish the unit's registration details along with the existing property tax records for the site.

The policy sets out no competitive selection process. Instead, each claim is tested against the eligibility conditions laid down in the policy, and the additional covered area is confirmed by means of a certificate from the Municipal Corporation concerned.