Punjab Excise Department to Collect Sanitation Fees in Urban Areas
LAHORE: The Punjab Excise, Taxation and Narcotics Control Department is set to begin collecting sanitation fees from residents and businesses in urban areas across the province from the 2026-27 financial year.
The department has signed an agreement with the Suthra Punjab Authority to implement a uniform system for billing and collecting sanitation fees.
The Punjab cabinet approved the proposed fee structure during its meeting on August 6, 2026. Under the approved rates, monthly sanitation charges will vary according to property size and the type of premises.
Monthly Sanitation Fee Structure
For urban residential properties measuring up to five marla, the monthly fee has been set at Rs300, while small commercial businesses in the same category will pay Rs500.
Properties measuring between five and 10 marla will be charged Rs500 per month, while medium-sized businesses will pay Rs1,000.
The monthly fee for residential properties measuring 10 to 20 marla will be Rs1,000, while properties between 20 and 40 marla will be charged Rs2,000. Properties larger than 40 marla will have a monthly fee of Rs4,000.
Large businesses will be charged Rs3,000 per month.
Collection Through Excise Department
The Excise Department will start collecting the sanitation fee from the 2026-27 financial year. Outstanding bills from previous periods will continue to be recovered by the Suthra Punjab Authority.
Under the agreement, the Excise Department may combine sanitation charges with property tax bills. It will also be responsible for surveying properties, maintaining records, preparing and distributing bills, collecting payments and reconciling accounts.
The department will receive one percent of the total sanitation fee collection as an advance payment for providing these services.
Areas Excluded From the Scheme
The agreement does not cover urban areas under the jurisdiction of cantonments, Defence Housing Authorities (DHAs) and private housing schemes.
These areas have their own systems for cleanliness, solid waste management and sanitation fee collection.
Officials said the new system is intended to create a more organised and technology-based mechanism for billing and collecting sanitation charges.
The Excise Department will maintain a database of consumers, assign unique identification numbers, conduct surveys and update property records.
Officials from the Excise Department and Suthra Punjab Authority are currently holding meetings to prepare for implementation of the agreement.
