In a new development, the Capital Development Authority (CDA) has announced a hefty tax increase on commercial and residential properties across Islamabad.
According to the details, the tax will be imposed on shops, apartments, and plots across all sectors and housing societies in the federal capital.
In a notification, the civic authority announced that a tax of Rs. 24,000 has been levied on properties measuring 140 square yards in Islamabad’s Shahzad Town, Margalla Town, and Rawal Towns.
For houses comprising one kanal, a tax of Rs. 180,800 has been imposed, while farmhouses ranging from 2 kanals to 120 kanals are subjected to a tax of approximately Rs. 442,090.
In Islamabad’s Blue Area, a tax of Rs32 per square foot has been imposed on the ground floor in the commercial market, while in the basement, a tax of Rs. 22 per square foot has been levied. Residential apartments are now subject to a tax of Rs. 26 per square foot.
As per the notification by CDA, private hospitals will be taxed at Rs. 22, petrol pumps, and CNG stations at Rs. 180 per square yard, and marquees and marriage halls at Rs. 13 per square foot.
Meanwhile, the Federal Board of Revenue (FBR) has introduced a 7E tax on properties valued at Rs. 25 million across the country. Furthermore, an NOC from the FBR has also been made mandatory for the transfer of residential and commercial properties valued at Rs. 25 million or above.
The business community, traders, and property advisers have voiced concerns over the imposition of hefty taxes on residential and commercial properties by the CDA. They argue that this tax hike will further exacerbate the challenges faced by the property sector.
Muhammad Saeed, the chief coordinator of Lahore’s Property Dealer’s Association in Johar Town, expressed concerns regarding FBR’s decision. He requested the government to reconsider its decision.
According to Saaed, the transfer fee for a one-kanal house has surged to Rs. 5.4 million.
