GUJRAT: The Revenue Department has agreed to rationalise official rates of the real estate in Gujrat city as the proposed 10 per cent increase in rates has been brought down to only 2pc due to a strong resistance from the real estate agents association.

However, the proposed 10pc rise in existing rates will remain in rural areas of the district which will be applicable by July 1 with the start of the new fiscal year while the district collector is yet to issue a notification in this regard.

The revenue department used to fix rates with annual increase of 10 to 20pc in June every year and the proposed rates then made public to invite objections by citizens.

The department can also reduce rates in the name of rationalization in an area where the official rates are up as compared to the market price since official rates should slightly be less than that of the market price.

The provincial and federal governments collect taxes such as stamp paper, capital gain tax, registration fee, municipal committee’s tax and other charges as per the official rates of a property which has to be mutated through sale and purchase deed.

Some two weeks back, the district government had proposed 10pc increase in official rates throughout the district which was strongly opposed by the real estate agents association as well as citizens.

They had demanded reduction or at least rationalization of the rates particularly in the city where official rates in some areas were much higher than that of the market price.

Sources said that revenue officials and real estate agents association held several rounds of negotiations and finally agreed on mutual ratio of 2pc increase.

Gujrat Additional District Collector Irfan Ali Kathia said the department had received at least three dozen objections against the proposed increase of rates.

He said the rates in other parts of the district including Kharian and Sara-i-Alamgir tehsils as well as rural areas and other towns of Gujrat tehsil had been enhanced by 10pc which was a compulsion as per the legal procedure.

Published in Dawn, June 26th, 2016