Punjab Finance Act, 2026 introduces compulsory electronic tax payments and replaces the monthly late payment surcharge with a quarterly mechanism.
LAHORE: The Punjab government has made electronic payment of taxes mandatory for property transactions under the Punjab Finance Act, 2026, as part of its drive to modernise tax administration, improve transparency and strengthen revenue collection.
Under the amended law, all taxes payable under the Act must now be deposited through the electronic (e-pay) system, replacing conventional payment methods for transactions covered by the legislation.
The move is aimed at promoting digital tax compliance, reducing manual processing and improving documentation of property-related tax payments across the province.
In addition to introducing mandatory electronic payments, the Punjab Finance Act, 2026 has revised the mechanism for imposing late payment surcharges on unpaid taxes.
Previously, taxpayers who failed to pay their dues after October 31, 2026 were subject to a surcharge calculated on a monthly basis, with an additional surcharge accruing on the first day of every month during the period of default.
The amended legislation replaces the monthly system with a quarterly surcharge mechanism.
Under the new provisions, late payment surcharges will now be imposed on the first day of October, January, April and July for taxes that remain unpaid as of September 30, December 31, March 31 and June 30, respectively.
Officials said the mandatory use of the electronic payment system is expected to make tax collection more efficient by enhancing transparency, streamlining payment procedures and reducing reliance on manual transactions.
The government also expects the digital payment framework to improve record-keeping, strengthen tax documentation and provide greater convenience for property buyers and owners making tax payments.
According to officials, the shift to a quarterly surcharge regime is designed to simplify tax administration and recovery procedures while encouraging taxpayers to settle their liabilities promptly, thereby reducing defaults and supporting more effective revenue collection.