Punjab Property Tax Relief (Large Units)
By Department of Industries & Commerce, Government of Punjab
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Quick Answer
Large units in Punjab get a 50% property tax exemption for 7 years from commercial production; service industries are excluded.
About this subsidy
Clause 12.9 of Punjab's Industrial and Business Development Policy 2022 halves the property tax bill on a large unit's premises for 7 years from the date of commercial production. The relief is aimed at manufacturing: the policy explicitly excludes service industries such as tourism and hospitality, entertainment, cinema halls, multiplexes, healthcare, education services and the retail sector. Property tax is a recurring fixed cost that does not fall when a plant runs below capacity, so a seven-year 50% cut is most valuable in exactly the early years when a new unit is still ramping up volumes.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Department of Industries & Commerce is the Government of Punjab's department that runs the Punjab Start-up Cell. The Cell is headed by the Director of Industries and Commerce and acts as a single point of contact for the state's startup policy. The department is based at…
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What You Get
A 50% exemption from property tax for 7 years, counted from the date of commercial production. It applies to the unit's own premises and is delivered as a reduced municipal demand rather than a cash payout. Service industries are carved out entirely — tourism and hospitality, entertainment, cinema halls, multiplexes, healthcare, education services and retail cannot claim it.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Non-competitive. The department confirms the unit is an eligible large unit outside the excluded service sectors, verifies the commercial production date, and the 50% relief is applied to the property tax demand.
Application Process
- 1
Eligibility approval
The department approves the unit as an eligible large unit under the policy.
Provider - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
How much property tax is waived?
50%, for 7 years from the date of commercial production.
Which businesses are excluded?
Service industries such as tourism and hospitality, entertainment, cinema halls, multiplexes, healthcare, education services and the retail sector.
When does the period start?
From the date of commercial production.
Who qualifies?
Large units in Punjab under the Industrial and Business Development Policy 2022, outside the excluded service sectors.
Sources
Data on this page is compiled from official program and provider references.









