Over 100% property tax increase angers Karachi DHA residents

Over 100% property tax increase angers Karachi DHA residents

  • People claim that CBC has raised taxes twice in three years.
  • Residents intend to challenge a recent increase in court.

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CITY OF KARACHI: Cantonment Board Clifton’s (CBC) decision to send residents of Clifton and Defence Housing Authority (DHA) annual property tax, said to be revised a second time within three years in accordance with the Federal Board of Revenue’s new rental value, elicits strong opposition from residents, who plan to approach the judiciary in opposition to the move, it was revealed on Tuesday.

Many residents are astounded when they receive property tax notices with increases of 100 percent or more. In one such instance, the property tax was increased from approximately Rs100,000 to Rs250,000. There are numerous other cases of unjustified increases of more than 100 percent, according to the residents.

They have expressed utter disappointment and disapproval at being asked to pay “extra and unnecessary fees” as annual property taxes.

Many residents stated that they could not comprehend how the CBC could continue to raise the property tax, which they deemed to be “completely unfair and unjustified.”

As a result of the CBC’s failure to respond to their complaints, they have decided to pursue legal action.

“We, the Clifton Defence Community [CDC], have questioned the CBC regarding the unnecessary and unwarranted increase in property taxes, to which they have responded that they are enforcing the increase per court order,” President of the CDC Abdul Reman

“According to the CBC, they have deducted the annual rental value based on Federal Board of Revenue (FBR) property rates. According to the law, the annual rental value may only increase once every three years; however, they have increased it twice in three years,” Mr. Rehman explained.

He stated that the CBC had begun sealing both commercial and residential properties that were delinquent on their property taxes “only to spread fear among the residents.”

“As a result, the owners believe they have no choice but to pay the CBC’s outrageous demands,” he continued.

He stated that the community had chosen to relocate the court.

“It is time for the residents to band together and file a petition against these actions in court, as remaining silent at this time will give them permission to impose additional unwarranted increases in property taxes,” he added.

He stated that residents of the CDC platform had also gone to court over other matters, such as water distribution, extensive digging in the name of building storm water channels, infrastructure problems, etc.

Residents who wished to file a petition against the CBC were asked to bring their property tax invoices and other documents to the CDC, after which they met with their legal counsel in depth.

The CDC core committee also formed a coordination committee at this time. Regarding the issue of property tax increase, it will now investigate individual cases and reach out to other current and former Clifton and DHA residents.

“Both the vakalatnama and the power of attorney have been executed. In addition to being worded, the petition was signed by the majority of residents by Sunday. By the end of this week, the majority of residents who have not yet signed it will have done so. We will be in court the following week, said Mr. Rehman.

The CBC was unavailable for comment on the subject.

In the meantime, the DHA stated that they do not collect property tax and, as a result, have little to say about this matter.

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