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BRIEF
ON PROPERTY TAX
(a) The Property Tax is levied and
collected under the Sindh Urban Immovable Property Tax
Act, 1958 and Rules framed there under.
The Property Tax is levied
under Section 3 of the above said Act, by estimating
gross annual rent, which is determined under Section 6
of the Act.
(b) After devolution under
section
117 of Sindh Local Govt. Ordinance 2002
(3rd amendment)
section 117
every Taluka /
Town shall be rating area within the meaning of Sindh
Urban Immovable Property Tax Act, 1958, and shall
determine the rate of assessment in an area and
communicate such rates to respective Executive District
Officer Revenue) CDG Karachi for collection by the
Excise & Taxation Department.
© To ascertain the Annual Value
of property unit the Government of Sindh has
rationalized and simplified the system by notifying a
valuation table for different localities under Section
5-A of the Sindh Urban Immovable Property Tax Act, 1958
(copy enclosed). For this purpose all the Cities
(notified as rating areas) of the Province of Sindh have
been divided into five Groups and these groups are
further bifurcated into four zones according to their
socio-economic condition of the localities.
The category wise different
rates have been specified fro each Zone of every Group,
for the size of Plot in sq.yard and covered area in
sq.feet of the Property Unit.
(d) The tax is charged and levied @
20% of the annual value of the lands and buildings,
(e)
DETERMINATION OF ANNUAL
VALUE?
(i)
Size of Plot x Rate x 12.
(ii)
Covered Area x Rate x 12.
(iii)
Annual Value = (a) Plus (b)
Less 10% Allowance for Repair & Maintenance.
The
Government on certain Property Units on the basis of
their age, location, category and type of construction
of the Units also allows the rebates / concessions in
Annual Value / Rates.
(f) APPEAL
AND REVISION:
Any person aggrieved by an order of the
appropriate Authority may file Appeal before the
Collector or Revision Petition before the Director
General, Excise and Taxation, Sindh, Karachi within
stipulated period as prescribed in the Act, i.e.
30-Days and one year respectively.
(g)
Definition and duties of the Prescribed Authorities.
(i) Assessing
Authority:- There is an Assessing Authority for every
rating area who exercise such powers and performed such
duties as or conferred on it by the Act and Rules, i.e.
assessment and collection of tax.
(ii)
Director (DO in CDGK):- Perform the duties of collection
and appellate authority against any entry in the
valuation list or by the insertion there in or omission
there from of any matter under Section 10(1-A) of the
Act.
(iii)
Director General (EDO-Revenue CDGK:- To perform the
duties of hearing of revision petitions may on own his
motion at any time or an application made against the
order by an authority sub-ordinate to him.
(h) RECOVERY
OF GOVERNMENT DUES.
All the outstanding dues / penalty
against a property unit are revered under Section 16 of
the Act, from the owner of the unit but the dues can be
recovered from the tenant of such unit under Section 14
of the Act. The tax remaining unpaid is also
recoverable under land revenue act.
(i)
EXEMPTION.
Under Section 4 of the Sindh Urban
Immovable Property Tax Act, 1958 various property units
have been exempted from the Property Tax .
The tax
shall not be leviable in respect of the following
properties:-
a) building and lands owned by Federal
Govt.l Provincial Govt. & Local Govt. for
public purpose.
ii) a building or land the annual value
of which does not exceed eight hundred sixty four
rupees.
iii) building used for residential
purposes built on a plot nor more than 120 sq.yds.
iv) one flat with covered area not
exceeding six hundred square feet on any floor
of a building used for residential
purpose;
v) buildings and lands or portions
thereof used exclusively for libraries, public park &
play grounds & buildings and lands used exclusively for
public worship or public Charity including mosques,
churches dharmasalas, gurdawaras, orphanages, alms
houses burial or burning grounds or other places for the
disposal of the dead:
vi)
buildings and lands the annual value does not exceed
twenty four thousand rupees, owned by widows, minor
orphans, permanently disabled persons and retired
employees of Federal & provincial Government (Provided
where the value exceeds exemption limits tax shall be
charged on the annual value exceeding such limits).
vii) buildings and lands or portions
there of other than commercial properties declared as
protected heritage under the Sindh Culture Heritage
(Preservation) Act 1994.
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