KARACHI: A new method for evaluating the property tax based on market value instead of the annual rental value (ARV) proposed by the Cantonment Board Clifton (CBC) has irked residents of the Defence Housing Authority (DHA).

According to a public notice published in newspapers on Oct 20, the CBC has proposed a new assessment list for year 2022-2023 in accordance with Section 66 of the Cantonments Act of 1924 for the revision of valuations/assessments regarding property tax as required under sections 67 and 72 of the Cantonments Act, 1924.

The notice, however, has been rejected outright by most of the residents and owners of property within the DHA. They said that earlier the CBC based the system of calculation of the yearly property tax on the ARV.

They were of the opinion that the ARV method was still better than the CBC charging property tax based on the market value of a property. If it is to happen, someone paying Rs15,000 annually for a 1,000-yard house until now will have to pay six times of that, probably around Rs90,000 per annum, as per the new formula.

Owners, lessees can file objections and suggestions till 19th

It was said the ARV method was abandoned in most countries back in the 1980s, but it was carried on by the CBC, and there was no reason why it should not carry on now.

The CBC notice has called for objections and suggestions from the owners, lessees or occupiers of any property falling under the jurisdiction of the CBC within 30 days of the publication of the notice, which would be by Nov 19.

“Any person i.e., owner/lessee or occupier of any property, included in the list, preferring any objection/suggestion to the new proposed assessment list, may file the same in writing to the board within 30 days from the publication of this notice, stating therein that in what respect the valuation or assessment is disputed. Objections/suggestions received after the date shall not be entertained. The proposed assessment list has been uploaded on the CBC website www.cbc.gov.pk,” the notice says.

It also says that the proposed assessment list may also be inspected/seen by the owner, lessee or occupier of a property during office hours in the office of the CBC where it has been put on the notice board, on any working day within the 30 days.

The residents believe that even if they do object to the proposal, the CBC may reconsider or allow them a discount of 10 per cent only. And one still will have to pay the hefty sum while still buying water from private tankers.

A few residents also thought that the covered area of houses constructed prior to 1992 would not be considered for that tax evaluation.

Still, all have been urged by senior and more knowledgeable residents and property owners of the area to make sure and send in their objection letters asking to revisit the tax increase proposal to the CBC along with their property completion certificate, the approved building plan, the construction date, and a copy of the last paid property tax.

They are to also do this slightly ahead of time because Nov 19 falls on a weekend. The elders have also taken the trouble to prepare an objection letter form where the residents only need to fill in their details, for example, the CBC account numbers, etc., before submitting the same with the advice to also be sure to take a receiving from the CBC.

Published in Dawn, November 14th, 2022