ISLAMABAD: Residents of the capital have criticised the increase in property taxes and water charges that became applicable at the start of this month.

The new rates were notified by the Metropolitan Corporation Islamabad (MCI) in December.

“I visited the revenue office to deposit the property tax and I was shocked when a clerk told me I would have to pay taxes in accordance with the new rates, a more than 200pc hike in property and water taxes on my commercial property,” an F-7 resident said.

MCI spokesperson says rates were not revised for 20 years and so significant increase ‘is justifiable’

He said the taxes were too high and should be withdrawn. Another resident expressed similar views, demanding that Mayor Sheikh Anser Aziz revise the new rates.

“There is no justification for a more than 200pc increase in taxes,” the resident said.

The spokesperson for the MCI and Capital Development Authority, Syed Safdar Ali said the rates were revised by the MCI with approval from the elected house.

“I was told by the revenue office that the rates had not been revised for two decades, so the MCI’s action of revising the rates is justifiable,” he said.

The revenue office was part of the CDA before the MCI was formed. Residents and the capital’s business community have said that it is the fault of the civic authorities if the aforementioned rates were not revised in the past, and there should not be a massive hike with a single stroke of the pen.

The new rates, which were approved at an MCI session last year, have been applicable since the start of the current financial year on July 1.

According to the new rates, property owners are supposed to pay Rs13,500 for half an inch and Rs16,500 for 1/1 inch for new commercial water connections.

According to new rates, property owners are supposed to pay Rs13,500 for half an inch and Rs16,500 for 1/1 inch for new commercial water connections.

In addition, Rs25,800, Rs54,000 and Rs109,500 have been fixed for commercial connections of 1 dia, 1.5 dia and 2 dia.For residential consumers, Rs6,900 has been fixed for a 1/1 connection.

Private houses with less than 250 square yards of covered area will pay Rs192 in water charges per month, while houses with a covered area between Rs251 and 449sq yards will pay Rs225 per month.

The rate of Rs260 and Rs376 had been notified for houses with a covered area of Rs500 to 999sq yards and 1,000 to 1,199sq yards, respectively.

Rates were also increased for class three shopping centres, and their owners are supposed to pay between Rs1,104 and Rs4,572 per month depending on the area; Rs1,104 has been fixed for areas less than approximately 277.8sq yards and Rs4,572 has been fixed for areas between 901sq yards and 1,000sq yards.

The MCI has also increased property taxes: for plots in the E and F sectors of up to 100sq ft, 101-200sq ft, 201 to 250sq ft and 250sq ft and above, the MCI will charge Rs8, Rs10, Rs12 and Rs15 respectively.

Owners of plots up to 100sq ft are being charged Rs6 per square foot of covered area in the G sectors, and Rs8 for 101 to 200sq ft. Owners of plots up to Rs100sq ft in the I sectors will pay Rs6 per square foot of covered area.

The notification said flats are being charged in accordance with the rates fixed for the relevant area, and any residential properties other than those in the aforementioned areas will be charged Rs6 per square foot of covered area.

Property owners in Blue Area will pay Rs18 per square foot of covered area of the ground floor, and Rs12 for area other than the ground floor. The ground floor of markazes are to be charged Rs16.5 per square foot of covered area and Rs11 other than the ground floor. Industrial and institutional properties will be charged Rs9 per square foot of covered area.

Published in Dawn, July 10th, 2019