ISLAMABAD: The Metropolitan Corporation Islamabad (MCI) is all set to hold a two-day public hearing starting from Monday (today) to get feedback on its proposals to increase existing taxes and impose new ones from July 1, 2024.

“During the two-day hearing at Jinnah Convention Centre, we will get feedback of citizens and in the light of the feedback will finalise rates of taxes,” said an officer of MCI.

The MC is planning to make a massive increase in property taxes, water and sanitation charges. A committee has finalised proposals/new rates to be levied from the new financial year. There is no local government in Islamabad after February 2021 because of the negligence of concerned quarters and the affairs of MCI are being run by an administrator and a chief officer.

But the MCI has proposed the massive increase in property tax and water, conservancy charges and solid waste management fee “to reduce the gap between revenue receipt and operation and maintenance cost of services being provided by it.”

Two-day public hearing begins at Convention Centre for feedback on proposals

According to existing water charges, for 1000 gallon per month the rate is Rs16, which will be increased to Rs48. Occupants of A, B, C category government-run houses will pay Rs240 per month in place of the existing Rs96. The owner of a D category house will pay Rs310 against the existing Rs124. The occupants of H category houses will pay Rs810 against the existing rate of Rs324 while I category house holders will pay Rs940 in place of Rs376.

Meanwhile, the proposed rates stated that owners of private houses up to 250 sq yard will pay Rs480 per month instead of existing Rs192 while those living in 251 sq yard to 499 sq yard houses will pay Rs624 against the existing rate of Rs228 per month and house holder of 500 to 999 sq yard will pay Rs1500 against the existing Rs280. The government buildings will also face around four-time increase in water charges while the owners of commercial buildings will also have to pay more water charges.

The proposals also suggested an increase in charges for new water connection for commercial consumers. For ½ dia connection, the commercial consumer will have to pay Rs20,000 against the existing Rs13500.

The proposals also called for lump-sum amount for property tax for D-series. Instead of getting Rs6 against per square foot covered area, the owners of houses up to 140 sq yard in D series should be charged Rs31,500 lump-sum per annum. It said for E and F series, instead of Rs8 per sq yard covered area, the owners with plot area up to 140 sq yard should be charged Rs40,000. For G, I sectors and for all model villages and park enclaves, the new proposed lump sum rate is Rs30,000 for plot area up to 140 sq yard.

The proposal also stated that house owners in H-13, Ghouri Town all phases, Banigala, Khana Pull, Lehtrar Road and any other area in ICT limit should also be directed to pay property taxes. It proposed Rs23500 for plot area up to 140 sq yard (five marla) and based on plot size the rate should be increased.

Moreover, Rs31800 should be charged from DHA, Bahria Town and Bahria Enclave for plot area up to 140 sq yard (five marla) and Rs23700 against five marla houses from residents of Gulberg Housing Scheme, Naval Anchorage and other housing societies.

The new proposals also stated that there should also be an increase in property taxes on farmhouses. From the existing Rs6 per against covered and shed area, there should be a lump-sum tax of Rs209,000 for farmhouse up to 16 kanals. Owners of other farmhouses who have more than 16 kanals will be charged accordingly.

Published in Dawn, November 27th, 2023