Rawalpindi: City Deputy Commissioner Capt (r) Anwaar ul Haq has issued his approval for increasing the Deputy Collector’s (DC) rate of immovable property applicable in all parts of the district, according to a news report published on July 21. The official rate of property in these zones – notified for the purpose of tax collection – has been increased evenly by 10%.
The rise also accounts for a proportional upsurge in expenses required to register commercial and residential properties, as well as cost of the stamp papers required to register these property deeds. The new DC rates are to be applicable right away. At the same time, the DC rates in other districts of Punjab has also been increase. It is pertinent to mention here that the Punjab government, in Budget 2020-21 unveiling speech, had announced to postpone application of properties valuation tables during the ongoing fiscal year.
Responding to this rise, several stakeholders and members of the real estate associations have started to raise concerns that the rise in DC rates undermines the effectiveness of the Prime Minister (PM) Imran Khan’s recently announced relief package – which is aimed at reviving activity in the construction industry. Moreover, the federal government and the Government of Punjab have also announced several tax-relaxations for the real estate industry in the Budget 2020-21.
In this regard, the Real Estate Consultants Association (RECA) appealed to the prime minister and Punjab Chief Minister (CM) Sardar Usman Buzdar to arrange a meeting with the association’s delegation in order to remove the anomalies in properties’ market price against the notified DC rate.
Reportedly, some sources further claim that the property owners in Rawalpindi, who had purchased stamp papers at old rate, are now required to attach the ‘new stamp papers’ along with their applications, regarding sale and purchase of property.