City and District Real Estate News

Rawalpindi : Owners of small residential properties in Rawalpindi are facing property tax demands running into hundreds of thousands of rupees, triggering disputes with tax authorities over what residents say is a longstanding exemption for houses measuring up to five marlas.
Residents owning houses measuring between two and four marlas have reported receiving property tax bills ranging from Rs150,000 to Rs300,000. Some homeowners say enforcement action has also been initiated against properties where the demanded tax remains unpaid.
The controversy comes against the backdrop of difficulties faced by the Excise, Taxation and Narcotics Control Department in meeting property tax collection targets in Rawalpindi Division.
According to the reported complaints, the division has experienced a substantial shortfall in property tax collections over the past two years, particularly involving larger commercial and residential properties, shopping malls, plazas and major housing societies.
Residents allege that tax authorities have responded to the revenue shortfall by widening enforcement to include smaller residential properties, including houses that homeowners maintain had previously remained outside the property tax net.
At the centre of the dispute is the treatment of privately owned residential properties measuring up to five marlas.
Residents say the Punjab government granted an exemption from property tax to such houses around 25 years ago. They argue that owners of two-, three- and four-marla properties should therefore not suddenly face demands reaching hundreds of thousands of rupees.
The issuance of the bills has raised questions among homeowners over whether the exemption remains applicable, whether the taxation framework has subsequently been amended and how the amounts appearing on individual bills have been calculated.
Some residents have reported receiving demands of Rs150,000 to Rs200,000, while others claim bills have reached as high as Rs300,000.
The unexpectedly large amounts have particularly alarmed households living in modest properties, with residents arguing that such tax liabilities place a disproportionate financial burden on lower- and middle-income families.
The dispute has intensified following reports of enforcement measures against homeowners who have not paid the disputed amounts.
Residents allege that some small houses have been sealed over non-payment and that tax recovery operations have led to confrontations between citizens and Excise Department personnel.
There have also been allegations that authorities have pursued recovery through household assets in certain cases. These claims have contributed to growing resentment among affected residents and heightened tensions during enforcement operations.
According to the report, property tax collection in Rawalpindi Division has remained substantially below target, with an estimated shortfall of around 50 per cent over the past two years.
Residents contend that authorities should concentrate recovery efforts on major commercial properties, large houses, shopping centres, plazas and housing societies where significant tax liabilities may remain outstanding rather than placing additional pressure on owners of small homes.
The controversy has prompted calls for the Punjab government and senior Excise Department officials to clarify the legal status of the exemption for smaller homes and explain the basis on which the latest property tax assessments have been issued.
Affected residents have also called for the disputed bills to be reviewed and for clear guidance on the tax status of houses measuring up to five marlas.
The Excise Department's detailed position on the residents' allegations and the specific legal basis for the reported tax demands was not included in the original report.

Islamabad : ReNews Pakistan
The Capital Development Authority (CDA) has ordered an immediate halt to all development and commercial activities in the Kashmir Gardens Agro-Farming Scheme in Zone-IV of Islamabad, declaring the ongoing work illegal and unauthorised.

In a letter addressed to the Secretary of the Jammu and Kashmir Cooperative Housing Society, the CDA directed that the sale, purchase, transfer and allotment of plots, construction, landscaping, advertising, marketing and all other development activities in the scheme be stopped with immediate effect.

According to the authority, the Kashmir Gardens Agro Farming Scheme has not obtained approval of its layout plan or a No Objection Certificate (NOC) from the CDA. The authority said development activities being carried out without the required approvals were therefore unauthorised.

The CDA said the scheme’s sponsor had repeatedly failed to provide the documents, information and planning details required for processing the layout plan. The authority warned that if the outstanding deficiencies were not addressed, the society’s request for approval would be treated as disposed of.

The scheme covers land in Mouzas Phag, Panwal and Bhokkar in Zone-IV of Islamabad. The CDA has sought a comprehensive set of documents from the society to determine the legal and planning status of the project.

These documents include ownership records, sanctioned mutations, identity documents of the sponsors, audited financial statements, land possession certificates, contour and khasra plans, a non-encumbrance certificate and a detailed layout plan concept report.

The authority has also directed the society to deposit Rs8.114 million as a scrutiny fee for processing the layout plan.

Alongside the administrative restrictions, the CDA has instructed its Enforcement and Building Control Directorates to take action against illegal buildings and structures within the scheme, including their demolition or removal in accordance with the applicable rules.

The Islamabad administration and police have also been asked to assist the CDA in ensuring compliance with the directives and preventing further unauthorised development or construction activity.

The authority further directed the Islamabad Electric Supply Company (IESCO) and Sui Northern Gas Pipelines Limited (SNGPL) to provide utility connections in the scheme only where such connections are supported by CDA-approved layout and building plans.

Lahore : ReNews Pakistan
Pakistan Railways has significantly increased revenue from its commercial assets after auctioning 125 godowns at Badami Bagh, Lahore, raising annual lease income by more than four times compared with the previous arrangement.
According to railway authorities, the transparent auction increased the annual lease revenue from Rs 72.2 million to Rs 331.08 million, representing a 358.6 per cent increase. The auction is expected to provide a substantially stronger and recurring revenue stream from the railway’s commercial property assets.
In addition to the annual lease income, Pakistan Railways will receive Rs 277.72 million as an upfront security deposit equivalent to one year’s lease value. This brings the total first-year financial realisation from the auction to approximately Rs 608.80 million.
Railway authorities said the overall cash flow generated through the auction represented a 743.5 per cent increase compared with the previous year, highlighting the financial potential of better utilisation and transparent management of railway-owned commercial properties.
The Badami Bagh godowns form part of Pakistan Railways’ commercial asset portfolio in Lahore, where railway-owned land and buildings are used for business and storage activities. Officials said the auction process was conducted transparently to ensure competitive bidding and improve returns from existing assets.
Federal Minister for Railways Muhammad Hanif Abbasi said transparency and protection of the national interest remained key priorities in the utilisation of railway assets.
He said the effective and transparent commercial use of railway properties could contribute directly to the national exchequer, while congratulating the railway administration for conducting the auction process in a professional manner.
The sharp increase in lease revenue from the Badami Bagh properties comes as Pakistan Railways seeks to strengthen its financial position by improving the commercial utilisation of its extensive land and property portfolio. The latest auction demonstrates the potential for generating higher recurring income through competitive leasing and transparent disposal mechanisms.