RAWALPINDI: A new policy has been issued for Cantonment Boards including Rawalpindi and across the country to collect tax from self-occupied residential properties.
The new guidelines show that a 15% rebate on annual rental value will now be applicable based on a property’s construction period.
According to the notification of the ML&C Department, house tax collection accounts for 35% of the Cantonment Board’s total tax collection, but a study conducted by the headquarters ML&C under Sections 64A and 64B of the Cantonments Act, 1924, discovered that 15% tax on annual rental value was not being collected equally from self-occupied properties.
As a result, it stated, that tax collection from self-occupied residential properties will now be carried out in accordance with the new tax assessment guidelines.
As per details, if the property was built in less than five years, there will be no 15% tax rebate on the annual rental value.
The tax credit for houses built within the last ten years will be 5%. The tax rebate will be 7.50% for houses built between 10 and 20 years ago and 10% for houses built between 20 and 30 years ago, according to the statement.
Furthermore, the rebate will be given if the construction period was longer than 30 years based on the land value while there will be no property tax exemption/rebate for flats and apartments built more than 50 years ago.
According to critics, self-occupiers/landlords will be treated as tenants under the new tax regime and they will have to pay the house tax equivalent to the house rent.
The ML&C spokesman confirmed that all cantonments have received formal notification of their property tax assessment.
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Conservancy charges are taxed annually but never saw a single man cleaning and disposing of rubbish from streets
Purpose of property tax is just meant to feed employees no water, street lights available in most parts of Cantt areas