Pakistan: Hattar residents question urban classification after property tax imposed

Khyber Pakhtunkhwa [Pakistan], January 23 (ANI): Residents and traders in Hattar have raised serious objections to the imposition of Urban Areas Immovable Property Tax after the locality was declared an urban area, a decision they say was taken without transparency or public consultation, The Express Tribune reported.
The move has sparked widespread resentment among shopkeepers who argue that Hattar does not meet the basic criteria of an urban centre, it said.
According to The Express Tribune, officials from the Excise and Taxation Department have maintained that the levy itself was introduced by the Tehsil Municipal Administration (TMA) Khanpur, while the excise department is only tasked with collecting the tax. Authorities explained that when Khanpur was elevated to tehsil status, several surrounding localities were officially notified as urban areas.
Following this notification, a formal survey of commercial properties was carried out, leading to the imposition of property tax. Officials further stated that the tax rate, previously Rs 7 per square foot, has now been revised to Rs 10 per square foot. The levy applies uniformly to all commercial properties, regardless of whether shops are open, closed, or rented. The tax has reportedly been in force since 2021, and traders are now being asked to clear accumulated arrears for previous years.
Local residents have strongly contested the urban classification of Hattar, questioning the legal and administrative grounds for such a designation. They argue that the area lacks essential urban infrastructure and services, making the decision both arbitrary and unjust. Excise officials insist that Hattar is a fully notified urban locality, allowing taxes to be imposed not only on shops along main roads but also within inner neighbourhoods.
Another major concern raised by residents is the retrospective nature of the tax, which they describe as an undue financial burden. They point out that multiple taxes are already imposed on properties, advertisements and billboards, and that this additional levy was introduced after Khanpur became a tehsil. Residents also recalled that objections were raised with senior authorities at the time, but no corrective action was taken, as highlighted by The Express Tribune.
While stressing that they are not opposed to lawful taxation, residents rejected what they termed arbitrary decisions made without stakeholder input. They called for collective action, urging engagement with the chief minister and relevant authorities, and said they would pursue constitutional and democratic avenues to seek relief.
In their appeal, residents demanded that future taxation measures be introduced transparently, with elected representatives and affected citizens taken fully on board, rather than imposing unilateral financial pressures on the public, as reported by The Express Tribune. (ANI)