RCB starts collecting inflated taxes sans board approval

Committee yet to give input on proposed increase in taxes, other fee

RAWALPINDI:

The Rawalpindi Cantonment Board (RCB) has started collecting inflated fees under various heads prior to the approval of the board meeting of elected representatives.

A review committee comprising elected representatives is yet to give its input regarding the proposed increase in taxes and other fees including development charges, building application fee, checking fee, security deposit, non-utilisation charges, commercialisation charges, mutation fee etc.

The steep increase in fees for lease properties has led to a dramatic drop in the number of building plans for residential and commercial construction, also affecting the business of the construction industry.

Member Cantonment Board Hafiz Hussain Ahmad Malik declaring the fee illegal announced to approach the army chief and the Director General Military Lands and Cantonments for the reversal of overblown charges.

During the tenure of, RCB former executive officer Omar Farooq Ali Malik, a draft for a drastic increase in the fee and charges was prepared but the draft was not formally approved in the board meeting of elected members. However, a committee was set up to review the draft but before the committee pours in its recommendation, the proposed increase has been implemented.

Read: Residents get inflated tax notices from RCB

According to the increase, development charges for building plans of commercial property on lease land have been increased from Rs 1000 per square feet to 10 per cent of the deputy commissioner rate, which is more than a 1000 per cent increase. For residential property on lease land, the deputy commissioner rate has been increased from Rs125 per square foot to 10 per cent, which is over a 1000 per cent increase. While for private land development charges on commercial building plan have been increased from 800 square yards to Rs1,500 square yards and for residential building plan from 225 square feet to Rs500 per square foot.

Similarly, the commercial building application fee has been increased from Rs12 per sq foot to Rs20 per sq ft and residential from Rs3 per sq ft to Rs5 sq ft. The checking fee has also been increased from Rs5 per square foot to Rs10 on a commercial while incase of residential the fee has been increased from Rs1 per square feet to Rs 5 sq ft.

While the security deposit has been drastically increased from Rs5,000 to Rs 10,000 marla for residential property, up to 10 marlas from Rs 15,000 marla to Rs 25,000 per marla and from 10 marlas to one kanal Rs 25,000 marla to Rs 40,000 marla. In case of construction on more than one kanal plot, Rs40,000 marla has been increased to Rs80,000 marla. Similarly, security deposit out of the market area has been increased from Rs10,000 to Rs60 per square foot covered area in exchange for a building plan for construction on commercial plots.

 

Published in The Express Tribune, February 28^th, 2022.