Excise and Taxation Department

PROPERTY TAX
 

Property Tax is levied and collection under Sindh Urban Immovable Property Tax Act, 1958.

A uniform rate of tax is levied on all categories of properties @ 20% of annual rental value (ARV).w.e.from

01.07.2001.

Brief of 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 5 of the Act.

(b) 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. 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

n sq.yard and covered area in sq.feet of the Property Unit.

(c) The tax is charged and levied @ 20% of the annual value of the lands and buildings,

(d) 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.

(e) APPEAL AND REVISION:

Any person aggrieved by an order of the appropriate Authority may file Appeal before the Director 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.

(f) 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:- 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:- To perform the duties of hearing of revision petitions may on own his motion at any t

ime or an application made against the order by an authority sub-ordinate to him.

(g) 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 48000/= rupees, owned by widows,

minor orphans and permanently disabled persons

vii) buildings and lands or portions there of other than commercial properties declared as

protected heritage under the Sindh Culture Heritage (Preservation) Act 1994.