A new policy has been introduced to collect taxes from self-occupied residential properties in cantonment areas across the country, according to news published on September 13.
Per the notification issued by the Military Lands and Cantonments (ML&C) Department, the share of house tax in the Cantonment Board’s tax collection is 35%. According to a study, it was discovered that 15% of tax on annual rental value was not being collected from the self-occupied properties. The critics stated that the self-occupiers would be treated as tenants under the new policy and have to pay a tax equivalent to the house rent.
Under the new policy, a 15% rebate on annual rental value will be applicable depending on the property’s construction period. The following are the details:
If the property was constructed less than five years ago, no 15% tax rebate would be charged
For the houses built within the last ten years, the tax credit will be charged at 5%
For homes built between 10 and 20 years, the tax rebate will be 7.5%
For homes built between 20 and 30 years, the tax rebate will be 10%
Moreover, the rebate will depend on the land value for houses with a construction period longer than 30 years. It was mentioned that there would be no exemption for flats and apartments constructed more than 50 years ago.
