In a recent development, the Capital Development Authority (CDA) announced a significant tax increase on commercial and residential properties in Islamabad.
According to the details, the tax will be levied on shops, apartments, and plots in all sectors and housing societies throughout the federal capital.
According to Civic Authority
In a notification, the civic authority announced that a Rs. 24,000 tax has been imposed on properties measuring 140 square yards in Islamabad’s Shahzad, Margalla, and Rawal Towns.
A tax of Rs. 180,800 has been imposed on houses with one kanal, while farmhouses with two to 120 kanals are subject to a tax of around Rs. 442,090.
In Islamabad’s Blue Area, a Rs32 per square foot tax has been imposed on the ground floor of the commercial market, while a Rs. 22 per square foot tax has been levied in the basement. Residential apartments now have a tax of Rs. 26 per square foot.
According to the CDA’s notification, 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 implemented a 7E tax on properties worth Rs. 25 million across the country. Furthermore, the transfer of residential and commercial properties valued at Rs. 25 million or more now requires an FBR NOC.
The business community, traders, and property advisers have expressed concern about the CDA’s imposition of high taxes on residential and commercial properties. They argue that the tax increase will exacerbate the property sector’s challenges.
Muhammad Saeed, the chief coordinator of the Lahore Property Dealers Association in Johar Town, expressed concern about the FBR’s decision.
He requested that the government reconsider its decision. According to Saaed, the transfer fee for a one-kanal house has increased to Rs. 5.4 million.
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