Metropolitan Corporation Islamabad announces significant increase in property taxes

By Naveed Siddiqui
ISLAMABAD: The Metropolitan Corporation Islamabad (MCI) has released a comprehensive notification regarding the revision of property tax rates in the Islamabad Capital Territory (ICT). The revision, authorized by the ICT Local Government Act, 2015, aims to streamline property taxation and ensure equitable distribution of tax burden among property owners.
The revision of property tax rates is executed under Sub-Section-5, Section 88, Chapter-X of the ICT Local Government Act, 2015. This legal framework empowers the MCI to revise and implement property tax rates for residential and commercial properties within the ICT jurisdiction.
The revised property tax rates cover both residential and commercial properties situated in various sectors, housing societies, and commercial areas within the ICT limits. The rates are categorized based on plot area, covered area, and specific property types. Chief Officer MCI, Rana Waqas Anwar has issued the formal notification regarding significant increase in property taxes.
The residential property tax rates are structured according to different series, sectors, and housing societies. The rates vary based on plot area, with additional considerations for specific locations such as DHA, Bahria Town, and Gulberg. The rates are delineated in a tabular format, providing clarity on the applicable tax amount for different plot sizes and locations.
Commercial property tax rates are outlined for different categories of properties, including diplomatic enclaves, blue areas, markaz, private hospitals, hotels/motels, industrial areas, educational institutions, petrol pumps/CNG stations, marquees/marriage halls, and other commercial establishments. The rates are specified for both ground floors and upper floors, reflecting the diverse nature of commercial properties within the ICT.
The notification identifies specific categories eligible for exemptions and rebates, including widows, retired government employees, active tax filers, salaried individuals, and public institutions. Exemptions are also extended to certain public facilities and government-owned properties.
The notification outlines the implementation process, including documentation requirements for claiming exemptions, provisions for surcharges, annual increases, and the applicability of rates to newly developed areas. It emphasizes compliance with legal procedures and adherence to the prescribed timelines.
The notification has been distributed to relevant stakeholders, including MCI administrators, members of the Capital Development Authority (CDA), directors, financial advisors, and government departments involved in revenue management and tax administration.
The revision of property tax rates by the Metropolitan Corporation Islamabad signifies a proactive approach towards enhancing revenue generation and ensuring fairness in property taxation. The detailed notification provides clarity on the revised rates, exemptions, and procedural requirements, fostering transparency and accountability in tax administration within the ICT.
The revised property tax rates will have significant implications for property owners, businesses, and government institutions operating within the ICT. It is imperative for stakeholders to familiarize themselves with the revised rates and comply with the prescribed procedures to avoid penalties and ensure smooth tax compliance. In the other hand, traders and political leaders of Islamabad have categorically rejected the massive increase in property taxes, demanding the authorities to review anti-people decision. According to the notification, property tax has been levied at 24,000 rupees on plots measuring up to 140 square yards in Shehzad Town, Margalla Town, and Rawal Town, while properties of up to 8 kanals have incurred a tax of 180,000 rupees.
As per the notification, farmhouses ranging from 90 to 120 kanals will be subjected to a property tax of 442,000 rupees. Commercial properties in the Blue Area will face a tax rate of 32 rupees per square foot for ground floor usage and 22 rupees per square foot for basement spaces. Residential apartments will be taxed at 26 rupees per square foot.
The notification further specifies that private hospitals will be taxed at a rate of 22 rupees per square foot, while petrol pumps and CNG stations will face a tax of 180 rupees per square yard. Marquees and wedding halls will incur a tax of 13 rupees per square foot.