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CDA planning to double property tax, water charges - Lahore_Real_Estate - 07-13-2010 02:37 PM
ISLAMABAD: Living in the federal capital is going to be tougher as the Capital Development Authority (CDA) is planning to double the property taxes and water charges, besides imposing entry fee at public parks.
“We are trying to rationalise the taxation mechanism. This has not been revised for the last decade or more. Taxes in major cities of Lahore and Karachi are far higher than those of Islamabad,” said a senior CDA official.
As far as property tax is concerned, the authority would increase it in accordance with the value of the property.
“Presently, the person living in Sector I-10 is paying tax equal to the one residing in sector E-7. The people living in posh sectors should pay more than those of smaller sectors,” the official justified.
He said the upcoming increase would not burden the residents of smaller sectors much rather a minimal increase would be made in their taxes.
“The CDA is receiving far lesser taxes than Karachi and Lahore. Even if taxes are doubled, it would be almost 40 percent lesser than those of the two cities,” he said.
However, he said it was yet to be decided whether the taxes for smaller sectors should be increased or not, but the residents of posh sectors would have to bear the burden at any cost.
Increase in water charges would also be made in comparison with those of Karachi, Lahore and other mega cities, he said adding that efforts were also being made to improve water supply network of the city.
In its annual budget for fiscal 2010-11, the CDA has set a target to collect Rs 900 million from property tax against Rs 600 million last year. Moreover, the civic body has also increased target of water charges collection from previous Rs 350 million to Rs 500 million.
According to the CDA official, any increase or imposition of new tax would be subject to the approval from the CDA Board.
Regarding imposition of park entry fee, he said the imposition of minimal amount is just to avoid misuse of public parks and ensure a conducive atmosphere for families too.
“People lying in grounds and getting massaged is a common scene in public parks. Are they meant to do that in park where besides men, women have also equal right of recreation. But in such circumstances, no family can enjoy fresh air or move around,” said the official. app