ISLAMABAD: Residents of the federal capital, including the traders’ community, have threatened to stage protests and contest the decision in court after the local administration made an exorbitant increase in property taxes.

The Metropolitan Corporation Islamabad (MCI) recently got the new property taxes published in the gazette of Pakistan.

“Traders have decided to meet on Wednesday to chalk out a strategy to contest this massive 300pc increase in property tax,” said All Pakistan Anjuman-i-Tajiran President Ajmal Baloch. He said this exorbitant increase was not acceptable to traders as well as the residents of the capital.

Mr Baloch said this increase was unprecedented and also a violation of court orders. He said some years ago, the MCI had increased tax rates, but the chamber of commerce filed a petition with the Islamabad High Court, which decided that the interim setup of the MCI could not impose taxes and such policy decisions should be taken by elected representatives of the local government.

Traders’ leader terms decision violation of court orders; JI vows to get notification reversed

He said till now there was no elected house of the local government but still the MCI, which was headed by a chief officer, increased property taxes. “This is contempt and the traders will approach the court again,” he added.

A civil society member, Naseem Usmani, who lives in D-17 sector, said in the absence of an elected MCI body, taxes could neither be imposed nor increased.

“We are holding meetings with citizens and we are going to file a court case,” he said, adding that the Capital Development Authority (CDA) and MCI were not providing services, such as water and roads, to private housing societies,but were eager to impose heavy taxes.

Meanwhile, in a statement the other day, the Jamaat-i-Islami (JI) Naib Emir and former MNA Mian Mohammad Aslam termed the increase in property tax and water charges by the MCI an unconstitutional and unjustified step.

He said his party would play its role to get the notification reversed.

According to the notification, in the D sector series, Rs27,000 per year property tax would be charged for houses built on a plot measuring up to 140 sq yards while in the E sector series, an amount ofRs34,000 would be charged for houses of similar size. Similarly, Rs35,000 tax will be imposed on houses constructed on a plot measuring 140 sq yards in I-8 sector and Rs28,000 in G sector series.

In the I sector series, except I-8, an amount of Rs25,000 per annum tax would be charged for residences built on a plot measuring 140 sq yards and Rs24,000 tax would be imposed in E-11 sector for residences built of the same size plot.

Property tax in model villages would be as follows: Rs25,000 for a house on 140 sq yard plot in Park Enclave and Rs19,000 for the same size plot in any residential area other than the above-mentioned sectors.

In the same way, Rs27,000 property tax would be charged for a five marla house in Defence Housing Authority (DHA) and Bahria Town and Rs20,000 in Gulberg Green, PWD, Korang Town, Soan Garden and any other area that fell in zones IV and V.

An amount of Rs20,000 will be charged in societies located in Zone-II and those surrounding G.T. Road in the limits of Islamabad.

As far as farm houses are concerned, those spread on an area up to eight kanals, property tax would be Rs180,000 while those that measure between eight kanals and 16 kanals, Rs209,000 would be charged. In all said areas, tax would increase as per the size of the plots.

Meanwhile, the MCI has also increased taxes on commercial properties as well as water charges.

When contacted, Rana Mohammad Waqas Anwar, the MCI chief officer, who is also the corporation’s administrator, said tax rates had been increased as per the law and rules. He said the Local Government Act empowered the administrator to take all policy decisions.

“As far as court order is concerned, in 2019, the IHC decided against the MCI on the ground that we had increased taxes without holding a public hearing. This time around, we held a two-day public hearing, got feedback from the public and after getting their input, modified our proposed rates,” he said, adding that tax rates were essential for growth and civic maintenance of any city.

He clarified that tax rates would be imposed on houses not on vacant plots. To a query about claims of Rs300pc increase, he said this figure was exaggerated.

“We increased taxes on the basis of logic and rationale,” he added.

Published in Dawn, March 26th, 2024