The Capital Development Authority (CDA) has introduced new tax rates for real estate properties in Islamabad, according to a notification issued by the authority.
Owners of 140 square yards plots in sectors and housing societies such as Shahzad Town, Margala Town, and Rawal Town will now be subject to a tax of Rs24,000, according to the notification.
Furthermore, property owners with farmhouses spanning eight kanals will face a tax of Rs180,000, while those with farmhouses ranging from 90 to 120 kanals will be taxed Rs442,000.
The CDA’s tax notification outlined that commercial properties in the Blue Area will be taxed at Rs32 per square foot for ground floors, Rs22 per square foot for basements, and residential apartments will incur a tax of Rs26 per square foot.
Additionally, the notification specified that private hospitals will be taxed at Rs22 per square foot, petrol pumps, and CNG stations at Rs180 per square yard, and marquees and marriage halls at Rs13 per square foot.
Business community, traders and property advisers express concerns
The Lahore Property Dealer’s Association l expressed concerns over the FBR’s introduction of the 7E tax.
Muhammad Saeed, the chief coordinator of Lahore’s Property Dealer’s Association in Johar Town, voiced his reservations in an interview with a private news channel. He criticized the FBR’s decision, describing it as detrimental to the country’s interests. Saeed noted that the PML-N’s attempt to reintroduce 2016 policies would not be accepted by the real estate sector and called on the government to revoke the decision.
He highlighted that the transfer fee for a one kanal house has now surged to 5.4 million rupees and expressed concerns over the limited transactions of plots due to the increased transfer charges. Saeed urged the government to reconsider the decision promptly.
Water tax imposed
The Metropolitan Corporation Islamabad (MCI) has announced a new water tax for citizens using bore water, determined by the horsepower of the boring motor. The tax has been implemented due to the water shortage in various areas of Islamabad, prompting residents to opt for bore wells.
The MCI’s notification outlines varying monthly charges based on the motor’s horsepower and pipe size. For instance, households using a half-horsepower motor with a one-inch pipe will be charged Rs1,000 per month, while those with an 8 to 15-horsepower motor and a 3-inch pipe will face a monthly fee of Rs10,000. Commercial users will be subjected to higher charges, with rates ranging from Rs4,000 to Rs3 lakhs per month based on their motor’s horsepower and pipe size.