The Capital Development Authority (CDA) has announced new tax measures for real estate properties in Islamabad, significantly increasing the financial burden on landowners. This update, detailed in a recent authority notification, affects many properties.
For small-scale property owners, the adjustment means a tax of Rs24,000 for plots measuring 140 square yards in areas including Shehzad Town, Margala Town, and Rawal Town. This new tax regime impacts numerous owners in the capital.
The tax structure for farmhouses introduces substantial increases. Owners of 8-kanal farmhouses must now pay Rs180,000 in taxes. For larger estates, spanning 90 to 120 kanals, the tax escalates to Rs442,000, significantly altering the financial commitments for these property owners in Islamabad.
Commercial properties, particularly in the central commercial district, the Blue Area, are facing increased taxes. Ground floor shops are taxed at Rs32 per square foot, with basement areas taxed at Rs22 per square foot. Residential apartments in the same district will incur a tax of Rs26 per square foot.
The notification also specifies new taxes for other commercial facilities. Private hospitals are taxed at Rs22 per square foot. Petrol pumps and CNG stations will pay Rs180 per square yard, while marquees and marriage halls face a tax rate of Rs13 per square foot.
While these tax increases are expected to boost CDA’s revenue, they have raised concerns over the financial impact on property owners, especially those with smaller properties and farmhouses.