The legal imbroglio

The tax saga of the properties in Lahore Defence has now literally transitioned into a schmozzle. The residents are confused for they are facing a tax spike in the most abnormal and unprecedented manner.

The complainants are innumerable in no. So what’s the rationale for this draconian measure? In fact none whatever. A one kanal resident who has been paying 17,000 PKR every year is now being forced to pay 75,000 PKR whereas, for a two kanal house ends up paying 140,000.

The criterion is pretty unjustifiable. I mean how could you justify such an abrupt increase?

The affected of the said area have formed a group of around 250, people being represented by one advocate who is pleading his personal case, meeting certain designated men of WCB. Also, he has taken recourse to the high court against the matter. All others await the decision of the Court.

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But the probable formula is as under.

ARV (Annual Rental Value) Calculations by WCB


Cost of Land (a)= Cost per Marla x Plot Area =

PKR 1,000,000x 16.5 Marla =16,500,000

Cost of Construction (b)= Rate in 1980’s x Covered Area of 61C = 400 x4500 =1,800,000

ARV = (a+b)/20 =915,000

Final Rental Assessment = ARV/3 = 305,000

Rebate House built prior Year 2000 =25% Of 305,000= 76,250

Property Tax =15% of (305,000-76250)=Rs. 34,313

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Formula is:

A= cost of land per Marla X no of Marla

B= covered area in sqft X sqft rate as per their schedule

C= (A+B)/20 = annual rental value

Final ARV = C/3

Then they give up to a 25% rebate (any house built before 2000 gets a full rebate)

The final tax = 15% of final ARV

All prices schedule has been posted in the group already.

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I am a member of the same group and I have lived with my brother in the same house for over 23 years. Property is jointly held. 

Like others, I am also on tenterhooks. But waiting anxiously about some kind of reprieve and relief in the impending matter. I hope the authorities would take the matter to its logical conclusion. Hope better sense will prevail.

The majority of those who live in their houses and have not rented out their premises must not be treated under the same criteria that “what is good for the goose is good for the gander.”

The tax therefore should be brought down it is prayed. That’s what the majority wants.

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