Rawalpindi: A new policy has been introduced to collect taxes from self-occupied residential properties in cantonment areas across the country, according to news published on September 13.
As per the notification issued by the Military Lands and Cantonments (ML&C) Department, the share of house tax in the Cantonment Board’s tax collection is 35%. According to a study, it was discovered that 15% of tax on annual rental value was not being collected from the self-occupied properties. The critics stated that the self-occupiers will be treated as tenants under the new policy and will have to pay a tax equivalent to the house rent.
Under the new policy, a 15% rebate on annual rental value will be applicable depending on the property’s construction period. The following are the details:
If the property was constructed less than five years ago, no 15% tax rebate will be charged
For the houses constructed within the last 10 years, the tax credit will be charged at 5%
For houses built between 10 and 20 years, the tax rebate will be 7.5%
For houses built between 20 and 30 years, the tax rebate will be 10%
Moreover, for houses with a construction period longer than 30 years, the rebate will depend on the land value. It was mentioned that there will be no exemption for flats and apartments constructed more than 50 years ago.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
