The NWFP Urban Immovable Property Tax (Amendment) Ordinance, 2001

NOTIFICATION.
13th August, 2001.


No. Legis: l-(22)/71/4159-64.—The following Ordinance by the Governor of the North-West Frontier Province is hereby published for general information:-


THE NORTH-WEST FRONTIER PROVINCE URBAN IMMOVABLE PROPERTY TAX (AMENDMENT) ORDINANCE, 2001.
N.-W.F.P. ORDINANCE NO. XV OF 2001.
AN
ORDINANCE
further to amend the West Pakistan Urban immovable Property Tax Act, 1958.
WHEREAS it is expedient further to amend the West Pakistan Urban Immovable Property Tax Act, 1958 (W.P. Act V of 1958), for the purposes hereinafter appearing;
AND WHEREAS the Governor of the North-West Frontier Province is satisfied that circumstances exist which render it necessary to take immediate action;
NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, as amended uptodate, and the Provisional Constitution Order No. 1 of 1999, read with Article 4 of the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the Governor of the North-West Frontier Province is pleased to make and promulgate the following Ordinance:
1.         Short title and commencement.—(1) This Ordinance may be called the North-West Frontier Province Urban Immovable Property Tax (Amendment) Ordinance, 2001.
(2)        It shall come into force at once and shall be deemed to have taken effect on the first day of July, 2001.
2.         Amendment of W.P. Act V of 1958.— In the West Pakistan Urban Immovable Property Tax Act, 1958 (W.P. Act V of 1958),-
(A)       In section 3, for sub-section (2) the following shall be substituted, namely;
"(2) Subject to the provisions of section 4, there shall be levied, charged and paid a tax, on the basis of annual rental value of buildings and lands in the rating areas (heretofore notified or as may hereafter be notified under this Act).-

  1. at the rate specified in Schedule I in respect of residential buildings; and
  2. at  the rate specified in Schedule II in respect of commercial buildings,

to be calculated in accordance with the factors and formulas given in the respective Schedules:
Provided that,-

  1. a residential building owned and occupied by a widow, whose annual tax, excluding the permissible rebates, is upto two thousand and five hundred rupees, shall be exempt from payment of any tax under this Act, but if the annual tax of such building, excluding rebate, exceeds the said amount, the entire tax as assessed under clause (a) shall be payable in respect of such building;
  2. where a residential building owned and occupied by the owner himself, he shall be entitled to a rebate of fifty per cent, if he or any member of his family does not own any other residential building in the same rating area; and
  3. all residential buildings shall be admissible to the maintenance/age rebates at the following rates:

(a)        buildings exceeding ten years but     not exceeding twenty years old;
   

   10%

(b)        buildings exceeding twenty years but   not exceeding thirty years old, and

   20%

(c)      buildings exceeding thirty          years old.

30%

 

  1. in section 4, in clause (f), the words "widows and" shall be deleted; and
  2. for the existing Schedule, the Schedules I and II appended to this Ordinance shall be substituted.

 

SCHEDULE-I
[See section 3(2)]
RESIDENTIAL BUILDINGS
The tax on the basis of annual rental value shall be calculated in accordance with the following rates and formulae:

  1. The rating areas shall be divided into four localities, namely A, B, C and D; depending on the living conditions and facilities available therein. The areas so defined shall be notified in the official Gazette.
  2. The "A" locality shall, for the time being, be defined in the Provincial Capital, as presently there is no such locality in other district.
  3. The locality factors as worked out for computing the tax are:

(a)

for A locality

1.50 (One point five);

(b)

for B locality

1.25 (One point two five);

(c)

for C locality

1.00 (One); and

(d)

for D locality

0.75 (point seven five);

 

The above factors are for the Provincial Headquarter, that is for Peshawar. There shall be a rebate of 30% on the total tax calculated on the basis of the above factor value in respect of former Divisional Headquarters and 50% rebate on the total tax so calculated in respect of all other rating areas.
4.         The total annual tax shall be calculated as under:

  1. area of the plot in square yards;
  2. covered area in square feet, and
  3. (a) + (b) multiplied by the locality factor.
  1. The tax rebate as provided for in the second and third proviso to sub­ section (2) of section 3 shall be deducted from the total annual tax calculated vide items 3 and 4 above to determine the net payable tax.
  2. Buildings acquired for the use as offices by Government, semi- government or private commercial organizations or by Bank and Development Financial Institutions, shall be assessed for the purposes of tax on the basis of twenty percent of the actual annual rent; whereas the buildings heretofore mentioned, if rented out for residential purpose, shall be taxed on 15% of the actual rent during the year.

 

SCHEDULE-II
[See section 3(2)]
COMMERCIAL UNITS

  1. The commercial areas shall also be divided into four localities namely A, B, C and D, depending on the area and the business being carried therein.
  2. The "A" locality shall, for the time being, be defined in Provincial Capital, as presently there is no such locality in other cities of the province.
  3. The locality factors as worked out for computing the tax are-
  1. for A locality                           Nine
  2. for B locality                           Seven
  3. for C locality                           Five
  4. for D locality                           Three
  5. The above factors are for the Provincial Headquarter, that is for Peshawar. There shall be a rebate of 30% on the total tax calculated on the basis of the above factor value in respect of former Divisional Headquarters and 50% rebate on the total tax so calculated in respect of all other rating areas.
  6. The tax shall be calculated as under:
  7. area in square yards;
  8. covered area in square feet; provided that open  sheds in the commercial units shall be counted as one half of its total measurements, while calculating the covered area; and
  9. (a) + (b) multiplied by the locality factor.

6.         For educational institutions:

  1. the tax shall be calculated on the basis of covered area only. The area of the plot as required per item 5(a) above shall not be taken for computing the tax. This is to encourage the institutions in providing sports and other recreational facilities to their students; and
  2. the tax calculated on the basis of (a) above shall get a special thirty per cent rebate, being provided to all the educational institutions.
  1. Petrol Pumps with convenience store shall be charged at flat rate of Rs. 10,000/- and those without store at Rs. 5,000/- per annum.
  2. Industrial buildings with in the limits of rating areas shall be assessed for the purpose of this tax at a flat rate of Rs. 2.50 per square foot of the building. The provision of item 5(b) above shall be applicable to all the industrial areas as well.

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