The Capital Development Authority (CDA) has announced a comprehensive reform of property tax rates throughout the Islamabad Capital Territory (ICT) with the goal of increasing revenue collection.
In a departure from prior norms, the CDA has expanded property tax restrictions beyond certain sectors to cover the entire territory. This is the first time a uniform flat rate has been introduced for property tax.
Employees of private organisations registered with the EOBI will receive a 10% reduction in property tax under the new plan, which mirrors the perks received by government employees. This concession will apply to individuals who pay their bills by September 30th of each year.
Many enterprises, including government hospitals, educational institutions, libraries, and federal and provincial government offices, will be excluded from property taxes. However, semi-government entities will not be eligible for the same exemption.
The CDA would charge taxes on properties in particular areas like as Sector E-11, model towns, and the PHA Kurri Housing programme, ranging from Rs24,000 per year for residences on 140-yard plots to Rs200,000 for those on 4,000-yard plots.
Similarly, in Park Enclave, taxes will range between Rs25,000 for 140-yard residences to Rs227,000 for 2,000-yard structures.
Notably, property taxes would now apply to regions such as the Defence Housing Authority (DHA), Bahria Enclave, and Bahria Town. For example, a five-marla house in these locations will pay Rs27,000 in annual taxes, whereas a six-kanal house will pay Rs298,000.
Property taxes in Gulberg and Naval Anchorage would range from Rs20,000 to Rs170,000. Taxes will vary by series, such as D, G, F, and I, with F series homes incurring the highest tax, ranging from Rs35,000 to Rs1.2 million annually, depending on the size and location of the property.
To read our blog on “KPK government launches Billion tree plus project,” click here
