The Capital Development Authority (CDA) in Islamabad has rolled out a series of fresh taxes on real estate properties, significantly increasing financial responsibilities for landowners, as per a recent notification from the authority.
Under the updated tax structure, owners of 140 square yards plots in various sectors and housing societies, including Shehzad Town, Margala Town, and Rawal Town, now face a mandatory tax payment of Rs24,000. This move is set to affect numerous small-scale property owners in the federal capital.
The severity of the taxation is underscored by the imposing taxes on farmhouses. Owners of farmhouses spanning eight kanals are required to pay Rs180,000 in property tax, while those with larger properties ranging from 90 to 120 kanals face an even higher tax bill of Rs442,000. These tax rates are poised to reshape the financial dynamics for farmhouse owners across Islamabad.
In the bustling commercial hub of the blue area, commercial properties are now subjected to substantial taxes. Ground floor establishments will be taxed at Rs32 per square foot, while basement spaces will incur a tax of Rs22 per square foot.
Moreover, residential apartments in this area will face a levy of Rs26 per square foot, further adding to the financial burden for property owners.
The notification also delineates taxation rates for various other commercial entities. Private hospitals will face a tax of Rs22 per square foot, while petrol pumps and CNG stations will be taxed at Rs180 per square yard. Marquees and marriage halls are also not exempt, with a tax of Rs13 per square foot.
While the implementation of these taxes is anticipated to generate substantial revenue for the CDA, it has raised concerns among property owners, particularly smaller stakeholders and farmhouse owners, who fear the financial strain it will impose.