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Monday June 17, 2024

Islamabad MC to increase property tax, water charges

The approval of increase in property tax and water charges will be taken from the federal government

By Rana Ghulam Qadir
November 20, 2023
A representational image shows a tax written on a calculator. — AFP/File
A representational image shows a tax written on a calculator. — AFP/File

ISLAMABAD: The Municipal Corporation of Islamabad (MCI) has prepared a plan to increase the rate of property tax and water charges.

For the first time, it has been decided to introduce a fixed tax based on the plot size. A committee headed by MCI Chief Officer Rana Muhammad Waqas Anwar has prepared proposals, to which objections can be raised till November 26. A public hearing on objections to the residential and commercial property tax proposals will be held at the Jinnah Convention Center on November 27 and November 28, respectively.

The approval of increase in property tax and water charges will be taken from the federal government. This additional fee will be applicable from 1st June 2024. It is of the view that the reason for the increase is that MCI and CDA operation and maintenance costs are high and revenue is low. Property tax has also been levied on private housing schemes and non-sector areas within the limits of Islamabad. Separate tariffs have been levied according to the series of sectors.

Property tax of 140 square yard plot for D series sectors is Rs31,500, Rs 44,000 for 141 to 200 yards, Rs73,000 for 201 to 300 yards, Rs138,000 for 301 to 400 yards, Rs182,000 for 401 to 500 yards and for 501 to 1,000 yards Rs222,000 has been suggested.

The tax rate for E-series sectors is proposed to be Rs40,000 to Rs289,000. Rs40,000 to Rs148,500 is suggested for F series and Sector I8. Rs30,000 to Rs272,000 for G series sectors and minimum Rs30,000 to Rs271,500 for I series (except I8) has been suggested. Rs30,000 to Rs272,000 has been proposed for the properties of Model Village Shehzad Town, Margalla Town I and II, Humk Town, Humk Sub-district, Rawal Town, PHA Curry Road and Park Road.

Rs30,000 to Rs272,000 has been proposed for Park Enclave. Minimum property tax has been proposed from Rs23,500 to Rs146,000 for Sector H 13, Ghori Town, Banigala, Khanna Pul, Lahtrar Road and ICT area. A minimum of Rs31,800 to Rs35,700 has been suggested for Bahria Town and Bahria Enclave. Rs23,700 to Rs203,500 have been suggested for Gulberg and Naval Anchorage. A minimum of Rs23,700 to Rs203,500 has been suggested for Corang Town PWD, Swan Garden and other societies of zone four and five.

Rs23,700 to Rs203,500 has been proposed for all the societies of Zone 2 – Societies near New Islamabad Airport etc. which are located within Islamabad. Rs246,000 for 16 to 20 kanals and a maximum of Rs732,000 has been proposed. The commercial property tax of Sector I8 and E and F series sectors will be Rs33 per sq ft. The property tax on commercial plots of G series, Markaz I 9 and 10 and Syedpur Village will be Rs22 per sq ft.

The commercial property tax of I-11 and I-16 will be Rs16 per foot. The rate of private hospitals will be Rs22. The rate for hotels and motels will be Rs24 for a plot of 10,000 yards and above Rs36. The rate for fruit and vegetable market and cold storage is proposed to be at Rs15. The rate for government and semi-government institutions, corporations and clubs will be Rs14. Petrol pump and CNG rate for industrial and timber market and marquee and marriage hall rate is proposed to be at Rs20.

The rate on expressway from Faizabad to Rawat will be Rs11. The rate for IJ Principal Road will be Rs22 and the rate for automobiles will be Rs17. The rate for private educational institutions and government universities will be Rs18. High-rise buildings of all private housing schemes, ground floor carriage will be Rs12 and other floors will be Rs6. Water charges will also be increased. Where there is metered supply, the rate for 5,000 gallons will increase from Rs16 to Rs48, from 5,001 to 20,000 gallons, from Rs20 to Rs70 and for above, the new rate will be Rs96.

But the rate of private houses will be fixed. A 250 square yard plot rate will increase from Rs192 to Rs480 per month; 251 to 499 yards from Rs228 to Rs624; charges for 500 to 999 yards from Rs280 to Rs1,500; charges for 1,000 yards to 1,999 yards from Rs756 to Rs3,500 per month and for 2,000 yards and above the charges are proposed to be increased from Rs192 to Rs600.

Water charges of government institutions or houses will also be increased. Water connection charges have also been increased. Conservancy four components have also been proposed to be increased, which will be a minimum of Rs900 and a maximum of Rs9,250 per month.