Islamabad residents and businesses are up in arms after the Metropolitan Corporation Islamabad (MCI) announced a substantial increase in property taxes. The move, published in the national gazette, has sparked outrage with many vowing to challenge it in court and through protests.
The business community, represented by All Pakistan Anjuman-i-Tajiran President Ajmal Baloch, has taken a particularly strong stance. They consider the hike, which they estimate to be around 300%, “exorbitant” and unacceptable. Baloch claims this increase not only hurts businesses but also violates a previous court order.
According to Baloch, several years ago, the MCI faced legal action from the chamber of commerce regarding a similar tax hike. The Islamabad High Court ruled that the interim MCI setup lacked the authority to impose taxes, reserving such decisions for elected local government representatives. Baloch argues that with the absence of an elected body, the current MCI’s actions defy the court’s ruling.
Islamabad residents are also joining the fight. Naseem Usmani, a resident of D-17 sector, highlights the lack of elected representation as a key issue. He argues that without a proper MCI council, there’s no legal basis for imposing new taxes or raising existing ones. Usmani, along with other residents, is planning legal action and mobilizing for a court case.
They also criticize the MCI and Capital Development Authority (CDA) for neglecting basic services like water and road maintenance in private housing societies, while simultaneously imposing heavy taxes.
Breakdown of the New Tax Rates
- The new property tax structure varies depending on location and plot size. Here’s a glimpse into the revised rates:
- D-sector: Rs. 27,000 per year for houses on plots up to 140 sq yards.
- E-sector: Rs. 34,000 per year for similar sized houses.
- I-8 sector: Rs. 35,000 per year for 140 sq yard houses.
- G-sector: Rs. 28,000 per year for 140 sq yard houses.
- I-sector (excluding I-8): Rs. 25,000 per year for 140 sq yard houses.
- E-11 sector: Rs. 24,000 per year for 140 sq yard houses.
Model Villages and Housing Societies
- Park Enclave: Rs. 25,000 per year for 140 sq yard houses.
- Other Model Villages: Rs. 19,000 per year for 140 sq yard houses.
- DHA & Bahria Town: Rs. 27,000 per year for five marla houses.
- Gulberg Green, PWD, Korang Town, Soan Garden & Others (Zones IV & V): Rs.20,000 per year for five marla houses.
- Zone-II & Areas near G.T. Road: Rs. 20,000 per year.
Farmhouse Taxes Increased
- The new policy extends to farmhouses as well. Properties up to eight kanals will see a tax of Rs. 180,000, while those between eight and 16 kanals will be charged Rs. 209,000. These rates are expected to rise further based on plot size.
MCI Defends its Position
MCI Chief Officer Rana Mohammad Waqas Anwar defended the tax hike. He claims the increase is legal and based on the Local Government Act, which empowers the administrator to make policy decisions.
Anwar clarifies that the MCI conducted a two-day public hearing to gather feedback before finalizing the revised rates. He emphasizes the importance of these taxes for funding city growth and maintaining civic services. He also denies claims of a 300% increase, terming it an exaggeration.
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