New tax regime hits Islamabad property owners
The Capital Development Authority (CDA) has rolled out a series of new taxes on real estate properties in Islamabad, increasing financial obligations for landowners, as per an official notification.
The new tax system mandates owners of 140 square yards plots in various sectors and housing societies, including Shehzad Town, Margala Town, and Rawal Town, to pay Rs24,000 in taxes, impacting numerous small-scale property owners in the federal capital.
Furthermore, owners of farmhouses spanning eight kanals must pay Rs180,000 in property tax, while those with larger properties ranging from 90 to 120 kanals face a higher tax bill of Rs442,000, significantly reshaping the financial landscape for farmhouse owners across Islamabad.
In the commercial hub, the blue area, substantial taxes are imposed on commercial properties, with ground floor establishments taxed at Rs32 per square foot and basement spaces at Rs22 per square foot. Residential apartments in this area will also be subject to a tax of Rs26 per square foot, adding to financial burdens for property owners.
Additionally, the notification outlines taxation rates for various other commercial entities, such as private hospitals taxed at Rs22 per square foot, petrol pumps and CNG stations at Rs180 per square yard, and marquees and marriage halls at Rs13 per square foot.
While these taxes are anticipated to generate significant revenue for the CDA, they have raised concerns among property owners, especially smaller stakeholders and farmhouse owners, regarding the potential financial strain.
