Property Tax assessment procedure in Sindh, Pakistan

How Properties are Assessed

Property tax payable for a given property is based on Annual Rental Value (ARV) of that property. ARV, in turn, is assessed according to the reasonable prevailing rental rates for similar properties within the same locality. For this purpose, each mohalla, colony, town, road, street, etc. belongs to one of seven assessment categories (A, B, C, D, E, F, and G). The Excise & Taxation Department has created tables showing various rates per square yard for land area, and per square foot for covered area (i.e., buildings), for each category.

There is one table for residential valuations and one for commercial valuations. Within each table, different rates are given depending on whether the property is (a) used by the owner or rented and (b) on a main road (one at least 30 feet wide) or off road. The residential table shows different rates for the first 500 square yards of land area and 3,000 square feet of covered area. The land area rates in the commercial table also change above 500 square yards, and the covered area rates are divided into three as ≤1,500 / 1,501 – 3,000 / > 3,000 square feet.

There are special rules for certain types of properties, but to find ARV for general residential and commercial properties, use the following method:

1. Multiply the land area of the property by the applicable rate. 
2. Multiply the covered area of the property by the applicable rate.
3. Add the above, then multiply by 12 to get Gross Annual Rental Value (GARV). 
4. Take GARV less 10% to arrive at ARV.

As a simple example, suppose you own and live in a 1,350 square foot residential house on a 200 square yard lot fronting a main road in a Category A locality:

1. 200 sq yd x 0.40 = 80 
2. 1350 sq ft x 0.40 = 540
3. 80 + 540 = 620 x 12 = 7440 
4. 7440 – 10% = 6696

Thus, your property's ARV is assessed as Rs 6,696.