The Punjab government is set to commence the collection of a new ‘garbage tax’ from July 1, 2025, across both urban and rural areas of the province. This levy is part of the ambitious ‘Suthra Punjab’ (Clean Punjab) project, an initiative aimed at improving sanitation and waste management facilities province-wide.
Launched with an initial budget of Rs200 billion, the ‘Suthra Punjab’ project, initiated by the provincial government, has seen local bodies and waste management companies acquiring machinery and beginning door-to-door garbage collection in several districts, including Lahore.
However, full sanitation facilities have not yet been extended to all residents across Punjab, primarily due to delays in the commencement of work by some local governments and waste management companies. Despite these initial hurdles, the Punjab government has maintained its firm timeline for tax collection, issuing instructions to all relevant entities to finalize arrangements for garbage tax recovery by the July 1 deadline.
Punjab’s ‘Garbage Tax’ Rates (Effective July 1, 2025)
| Category & Area Type | Property/Business Size | Monthly Tax (PKR) |
| Residential Rural Areas | Houses: 2 to 5 Marla | 200 |
| Houses: 10 Marla or more | 400 | |
| Businesses Rural Areas | Small Businesses | 300 |
| Medium-sized Businesses | 700 | |
| Large Enterprises, Factories, and Industries | 1,000 | |
| Residential Urban Areas | Houses: Up to 5 Marla | 300 |
| Houses: 5 to 10 Marla | 500 | |
| Houses: 10 Marla to 1 Kanal | 1,000 | |
| Houses: 1 to 2 Kanal | 2,000 | |
| Larger Residences | 5,000 | |
| Commercial Areas Across Punjab | Shops | 500 |
| Medium-sized Businesses | 1,000 | |
| Factories, Industries, and Large Businesses | 3,000 |
Note: Residents of informal settlements in Lahore and other parts of the province will be exempt from this levy.
Official Statements and Project Goals
Local Government Secretary Mian Shakeel Ahmad confirmed that the garbage collection services are an integral part of the ‘Suthra Punjab’ project, initiated under the instructions of Chief Minister Maryam Nawaz Sharif. He highlighted that under this project, sanitation facilities are being extended to rural areas on par with urban centers. “Door-to-door garbage collection is also underway, and service charges will be collected from residents and commercial establishments across Punjab from July 1. All relevant authorities have been issued instructions in this regard,” said Ahmad.
Sahibdin Babar, Chief Executive Officer of Lahore Waste Management Company (LWMC), stated that an excellent sanitation system has been launched in the Lahore division, which includes door-to-door garbage collection and transportation to dumping points. He reiterated that from July 1, the LWMC would be responsible for collecting these service charges from residents and commercial businesses benefiting from these facilities.
