DC rate hike worries property dealers
The recent deputy commissioner (DC) rate hike for property transactions across the Rawalpindi district has caused significant distress among property dealers.
Deputy Commissioner Hasan Waqar Cheema issued a notification confirming the new rates, marking an unprecedented 300 per cent increase, the highest in the district's 77-year history.
Previously, DC rates were raised by about 10 per cent annually. However, this year's drastic hike has severely impacted the property market, leading to a sharp decline in property buying and selling activities.
According to the notification, new rates per marla include Rs2.06 million for domestic property in Kotha Kalan, Rs4.28 million for roadside commercial property, and Rs3.38 million for off-road commercial property in the same area.
The property dealers have announced plans to challenge the new rates in the Lahore High Court's Rawalpindi Bench. Chaudhary Asif Advocate, a leader in the High Court Bar Association and the Muslim League-N Lawyers Wing, criticised the hike as "a cruel move" and urged Chief Minister Maryam Nawaz to take notice.
He noted that the increase has driven the property business towards illegal practices, as buyers now prefer obtaining a Power of Attorney from the real owner instead of proceeding with new registries. This practice effectively strips sellers of control over their property.
Additionally, filers are now required to pay up to 17 per cent in taxes for new registries, while non-filers face up to 30 per cent in taxes. This substantial financial burden has led to a decline in support for the Muslim League-N among property businessmen.
Hasan Shah, Vice President of the Property Dealers Association, remarked that the new DC rates have brought the registration of property transactions to a standstill, causing significant harm to the property business. Similarly, Mudassar Shaikh, President of the Stamp Vendors Union, lamented that increased DC rates and stamp paper fees have started to ruin the business.