Property Tax Revision infuriates

The Cantonment Board Clifton (CBC) recently announced its plans to calculate property tax based on market value instead of yearly rental value, which has caused discomfort among residents of the Defence Housing Authority (DHA) in Karachi. The CBC released a public notification in newspapers, highlighting an update to the local charge evaluations for the year 2022-23 as mandated by Segment 66 of the Cantonments Act, 1924.

Property Tax Revision infuriates

However, the property owners and occupants in DHA vehemently oppose this proposal and have expressed their preference for the current yearly rental value (ARV) method. They argue that the ARV approach is superior to the market value technique, as it would result in exorbitant tax hikes if calculated based on market value. For instance, they claim that someone who pays Rs. 15,000 per year for a 1,000-yard home would have to pay six times that amount, or around Rs. 90,000, if the new method was implemented.

However, residents fear that if they oppose the proposal, the CBC might re-evaluate their taxes or offer a 10% discount. Nevertheless, they would still have to pay a significant amount, as they would have to purchase water from private sources due to CBC’s inability to supply it.