CDA announces increased taxes on real estate properties in Islamabad

ISLAMABAD: The Capital Development Authority (CDA) has announced significant tax increases on real estate properties across Islamabad, eliciting mixed reactions from property owners.

According to reports from Geo, a recent notification from the CDA outlines the new tax structures, affecting various sectors and housing societies within the capital.

Owners of 140 square yards plots in sectors such as Shehzad Town, Margala Town, and Rawal Town now face a tax of Rs24,000.

Meanwhile, owners of farmhouses spanning eight kanals are subjected to a hefty Rs180,000 tax, with those possessing farmhouses ranging from 90 to 120 kanals now burdened with a staggering Rs442,000 levy.

The notification from the CDA further delineates tax rates for commercial properties situated in the prestigious Blue Area. Ground floor spaces will be taxed at Rs32 per square foot, while basements face a Rs22 per square foot charge. Residential apartments within the vicinity will be subject to a Rs26 per square foot levy.

In addition to these adjustments, the notification also addresses taxes for specific establishments. Private hospitals will now incur a property tax of Rs22 per square foot, while petrol pumps and CNG stations face a Rs180 per square yard charge.

Marquees and marriage halls are not exempt either, with a Rs13 per square foot tax imposed on these venues.

While the CDA maintains that these taxes are necessary for urban development and maintenance, some property owners express concern over the financial strain these increased levies may impose.

The move has sparked discussions among stakeholders, with debates ongoing regarding the potential impact on the real estate market and overall economy.