ISLAMABAD: The federal government is considering imposing a luxury tax on houses located within the limits of Islamabad Capital Territory (ICT).
According to sources privy to this development, there shall be a luxury tax levied on ICT properties belonging to different categories (areas).
In the residential category, sources said that Rs100,000 tax would be levied on 2-4 kanal houses having a covered area of more than 6,000 square feet, while Rs200,000 tax has been proposed for 5 kanal or above houses with a covered area of over 8,000 square feet.
Meanwhile, in the farmhouse category-I, sources said that there would be no tax on a four-kanal property. However, an annual tax of Rs25 per square foot (covered area) has been proposed for farmhouses having a covered area between 5,000 to 7,000 square feet.
Likewise, Rs40 tax per square foot has been proposed for farmhouses with a covered area between 7,000 to 10,000 square feet, while Rs50 tax per square foot has been recommended for farmhouses having a covered area of over 10,000 square feet.
In the farmhouse category-2, sources said that there would be no tax on a four kanal property but an annual Rs60 per square foot tax has been proposed for farmhouses with a covered area between 5,000 to 7,000 square feet.
Meanwhile, Rs70 tax has been recommended on farmhouses with a covered area between 7,001 to 10,000 square feet and Rs80 tax on farmhouses with a covered area of more than 10,000 square feet.
Sources said the above-mentioned taxes shall not be applicable on houses occupied by widows, adding that the ICT’s Excise and Taxation Department has been tasked to collect the said tax in a prescribed manner.