ISLAMABAD, Nov 19: The Capital Development Authority (CDA) has withdrawn an incentive of 50 per cent rebate on entire outstanding arrears of property tax in self-occupancy cases, reliable sources said.

Under the decision, the CDA revenue directorate will give rebate to the self occupants on property tax only for two years — the current year and the previous one.

However, this relaxation will not be given to those who have to pay outstanding arrears from 1991 onwards.

A notification issued in this regard said: “50 per cent exemption in self-occupancy cases has no complication in case of running year property tax. However, it leads to serious consequences when it has to be allowed, specially in case when self-occupation rebates are claimed on property tax arrears since its inspection or from the date of completion/occupation of the house falling in mid 1990s.”

It said in some cases it was quite difficult for the revenue directorate to adjudge the status of property with regard to self occupation or otherwise.

Following the issuance of the notice, the gazetted notification issued in January 12, 2001, under which 50 per cent rebate was given on all outstanding property dues in self- occupancy cases, has become invalid.

The owners of houses have expressed concern over the move and asked the authority to withdraw the decision.

They said, on the one hand, the CDA increased property tax by 250 per cent and on the other, it had withdrawn relaxation in self-occupancy cases.

The authority has started the collection of increased property tax since March 1, 2001. The revision in property tax from 200 to 250 per cent had been approved by the CDA Board.

Likewise, hospitals, dispensaries, clinics, educational or training institutions and libraries being run on donations and located on plots allotted for special purposes will be given 100 per recent rebate on property tax only for two years.

Under the new notification, the retired government employees will also enjoy 60 per cent rebate on property tax for two years only.

It has been learnt that the CDA revenue directorate staff is not collecting the major chunk of property tax from commercial plaza owners, but concentrating mainly on recovery from the owners of houses.

Earlier, property tax was not imposed on those who wanted to construct houses in the federal capital. The incentive was given to attract people to the newly-established city for it rapid development.

The property was also revised in 1995, but last year it was increased by 250 per cent.

The CDA claims that the property tax in the federal capital was revised to bring it on a par with that applied in other major cities of the country.