CDA revises property tax rates across Islamabad to boost revenue

ISLAMABAD: The Capital Development Authority (CDA) has recently implemented significant changes to property tax regulations in Islamabad, aiming to bolster revenue generation across the entire city.

Previously, property tax collection by the development authority was limited to specific sectors. However, a new flat property tax rate has been introduced citywide, marking a notable shift in policy.

In a move to alleviate the burden on certain segments of the population, the CDA has decided to offer a 10% tax concession to employees of both private and government enterprises registered with the Employees’ Old-Age Benefits Institute.

This concession will also apply to any arrears settled by September 30 annually.

Notably, exemptions from property tax have been granted to public hospitals, educational institutions, libraries, and government organizations. However, semi-government entities will still be liable for property tax payments.

Under the revised tax structure, homeowners in various residential schemes face differing tax obligations.

For instance, owners of 140 square yard properties in model towns and PHA Kurri Housing Scheme (located in Sector E-11) will be required to pay Rs24,000 annually, while those with 4,000 square yard properties will face a higher tax of Rs200,000.

Similarly, homeowners with 140-yard properties in other areas will owe Rs25,000 annually, while those with 2000 square yard properties in Park Enclave will see their yearly tax obligation rise to Rs227,000.

In specific residential areas like DHA, Bahria Town, and Bahria Enclave, property tax rates vary based on property size. For example, owners of five marla properties will owe Rs27,000 annually, whereas those with six kanal properties will owe Rs298,000.

In Gulberg and Naval Anchorage, property tax rates range from Rs20,000 to Rs170,000, depending on the property.

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