Cantonment Board Clifton (CBC) has decided to estimate property tax on market value instead of annual rental value (ARV), upsetting residents of the Defence Housing Authority (DHA) in Karachi.
In this regard, CBC published a public notice in newspapers and hinted at a revision of property tax assessments for the year 2022-23 in line with Section 66 of the Cantonments Act, 1924.
However, residents and owners of property in DHA have categorically rejected the proposal and asserted that the CBC previously calculated the annual property tax as per the ARV.
They opined that the ARV method is better than the market value method and added that if someone is paying Rs. 15,000 per year for a 1,000-yard residence will have to pay six times as much, which will be around Rs. 90,000.
They further argued that the ARV approach was discontinued in most countries in the 1980s but the CBC continued with it and there is no reason why it should abandon it now.
In addition, the CBC notice requested complaints and recommendations from owners, lessees, or occupiers of any property in its jurisdiction within 30 days of the notice’s publication (before 19 November).
Moreover, residents believe that if they oppose the proposal, CBC may rethink or offer a 10 percent discount. However, they added that they will still have to pay a significant fee despite purchasing water tankers privately due to CBC’s failure to provide them with a water supply.
