LAHORE, March 18: The Excise and Taxation Department has divided property in provincial metropolis into five categories for the purpose of assessment of property tax.
The department hopes to recover Rs992 million instead of Rs551 million in property tax by switching over to the new system, an increase of Rs441 million. The new property rental evaluation formula has been evolved in the wake of the Lahore High Court verdict on a writ petition against its land-based formula.
The department hopes, not only to raise the recovery but also to increase the number of property units in the tax net from the existing 391,807 units to 427,424 units.
THE CATEGORIES: Commercial A category areas include Davis Road, Egerton Road, Brandreth Road, Empress Road, Abbot Road, McLeod Road and Wahdat Road (from Ferozepur Road to Naqsha Stop). Valuation rates for self-occupied and rented properties in the area range between Rs1.20 and Rs12 per square yard/ square foot according to the plot size, covered area and location.
The Residential A Category areas comprise Anand Road, Aziz Avenue, Canal Bank Road, Scotch Corner, Upper Mall, Wazir Ali Road, Zafar Ali Road and Zaman Park. Valuation rates for the rented and self-occupied properties here range between Paisas 25 and Rs4 per square yard/square foot.
The Commercial B Category areas include Abbot Road, Allama Iqbal Road, Circular Road, Cooper Road, Islampura (Krishan Nagar) Main Bazaar, Nicholson Road, Main Railway Road, Sundar Das Road and Zafar Ali Road. The valuation rates range from Re1 to Rs8 per square yard/square foot.
The Residential B category areas comprise Davis Road and Durand Road. The valuation rates range between Paisas 20 and Rs3 per square yard/square foot.
The Commercial C category areas include Abdul Karim Road, Bull Road, the Dharampra Main Bazaar, Dil Muhammad Road, Durand Road, Fleming Road (south east side of the road), the Garhi Shahu Main Bazaar, Habibullah Road, Infantry Road, Khizar Road, Landa Bazaar, Mughalpura Road, Muhammad Nagar, Qizalbash Road, Qila Gujjar Singh, Ram Gallian, Railway Road and Sikandar Road. The valuation rates her range between Paisas 60 and Rs7 per square yard/square foot.
The Residential C category areas comprise Allama Iqbal Road, Bibian Pak Daman, Bostan Colony Dharampura, Griffin Colony, LARECS Colony, McLagan Road, Military Accounts Colony, Montgomery Road, Nishtar Colony, Pathi Ground Qila Gujjar Singh, Railway Colony, Railway Scheme and Omar Colony. The valuation rates range between Paisas 15 and Rs2.50 per square yard/square foot.
The Commercial D category areas include Loha Market, Tyre Market, Naulakha Bazaar, Pathi Ground kutcha abadi and Tagore Park. The valuation rates range between Paisas 50 and Rs5 per square yard/square foot.
The Residential D category areas comprise Ahata Moosa, Amritsari Mohalla, Baja Line, Basti Saidan Shah, the Cooper Road borough, the Dharampura streets, Fayyaz Park, Gulistan Colony, Habibia Colony, Ittefaq Nagar, the Railway kutcha abadi, Mohalla Dara Shikoh, Muhammad Nagar (Bibian Pak Daman), Noorpur Kamboh Schemes 1 and 2, Nusrat Colony, Prem Gallian, Rahmat Colony, Sarae Ata Muhammad, Shamshan Colony, Tagore Park, Takya Sonyara, Amritsari Mohalla, Ahata Moosa, Baja Line, Basti Saidan Shah, areas around Cooper Road, the Dharampura streets, the Dry Port, Fayyaz Park, Gulistan Colony, Habibia Colony, Ittefaq Nagar, the Railway kutcha abadi, Mohalla Dara Shikoh, Muhammad Nagar (Bibian Pak Daman), the Noorpur Kamboh Schemes 1 and 2, Nusrat Colony Prem Gallian, Rahmat Colony, Sarae Ata Muhammad, Shamshan Colony, Tagore Park and Takya Sonyara. The valuation rates range between Paisas 10 and Rs2 per square yard/square foot.
The Commercial E category areas include Mohalla Dara Shikoh and Basti Saidan Shah and the commercial areas of all the villages. The valuation rates range between Paisas 30 and Rs4 per square yard/square foot.
The Residential E category areas comprise only the Ahata Makhan Singh. The valuation rates range between Paisas 5 and Rs1.50 per square yard/square foot.
Property tax for the areas not included in the list is to be recovered directly by the city district government.
ASSESSMENT FORMULA: The monthly rental value for can be calculated by multiplying the total area of the plot (in square yards) with the rental rate prescribed for the category and adding the multiple to product for the covered area (in square feet). The annual rental value can be calculated by multiplying the monthly rental value with 12 and subtracting 10 per cent from it as annual maintenance charges in case the building is less than 20 years old and 20 per cent in case the building is older than 20 years. Annual property tax for the buildings having an ARV exceeding Rs20,000 would be 25 per cent of the value. Tax for properties with an ARV below 20,000 would be 20 per cent of the rental value.
The Excise and Taxation Department has declared all the roads with a width of 30 feet or more as main roads for the purpose of calculation of property tax. Valuation rates for properties located on such roads are higher than the properties situated away from them.