CDA imposes tax on commercial, residential properties in Islamabad

Capital Development Authority (CDA) imposed a heavy tax on commercial and residential properties in Islamabad on Sunday. Tax will be levied on shops, apartments, and plots in all sectors and housing societies, reported 24NewsHD TV channel.
According to the notification of the taxation order issued by CDA, in Capital’s Shahzad Town, Margalla Town, and Rawal Towns Rs24000 tax has been imposed at 140 square yards.
While on a house comprising one kanal, Rs180800 tax has been imposed. While Farm Houses comprising 2 kanal to 120 kanals around Rs442090 tax has been imposed.
In Islamabad’s Blue area, a Rs32 per square ft tax is imposed on the ground floor in the commercial market while in the basement, a Rs22 per square ft tax has been levied.
In residential apartments, Rs26 per square foot tax is implemented.
According to the CDA’s notification, in private hospitals, a property tax of Rs22 has been imposed. On petrol pumps and CNG stations, Rs180 per square yard tax has been imposed. While in Marquees and marriage halls, Rs13 per square foot tax has been imposed.
Meanwhile, the Federal Board of Revenue (FBR) has implemented a 7E tax on property worth 25 million rupees across Pakistan.
Business community, traders and property advisers have expressed concerns over imposition of heavy tax on residential and commercial properties by the CDA, adding that this tax will aggravate the woes of property sector.
Meanwhile, now on ward, FBR’s NOC will be required for transfer of residential and commercial property worth Rs25 million.
Lahore’s Property Dealer’s Association has expressed concerns over the implementation of 7E tax by the FBR.
Lahore’s Property Dealer’s Association Johar Town chief coordinator Muhammad Saeed talking to 24NewsHD TV channel said that FBR’s decision is against the country’s interest. He said PML-N was trying to implement 2016 policies which will not be accepted by the real estate sector. He urged the government to suspend the decision.
He said now transfer fee of one kanal house has reached 5.4 million rupees. While transfers of plots has been squeezed after hike in transfer charges. He urged the government to take back the decision on urgent basis.

Reporter: Tayyab Saif