ISLAMABAD: Residents of G-13 and G-14 sectors are caught in confusion as two organisations, the Federal Government Employees Housing Authority (FGEHA) and the Metropolitan Corporation Islamabad (MCI), are simultaneously demanding G-13 G-14 property tax from them.
“This avoidable duplication is causing confusion and anxiety in G-13/14 residents,” says Ambassador Javed Hafeez, who has lived in the sector since 2010. He said the situation reflected a total lack of coordination between two organisations of the same government.
Another resident pointed out the oddity: usually government departments contest jurisdiction by saying an area does not fall in their limit, but here both FGEHA and MCI claim jurisdiction for the sake of tax collection. Several residents shared copies of property tax notices issued by the MCI and FGEHA.
G-13 G-14 property tax: How the dispute started
G-13 and G-14 were developed by the erstwhile Federal Government Employees Housing Foundation two decades ago. The foundation was given the status of authority in 2020 and started collecting property tax from residents.
Residents say a turf war then started between the CDA, which previously collected this tax, and FGEHA. According to residents, both the Islamabad High Court and the Wafaqi Mohtasib were of the opinion that the housing authority could collect property tax since it performed municipal functions in these sectors. For the last six years, residents have paid the tax to FGEHA. Now the MCI, an offshoot of the CDA, is demanding the same tax.
G-13 G-14 property tax: Residents complain of poor services
“We are confused and bewildered,” said a government officer living in sector G-13. Another resident objected to double taxation, saying the housing authority’s services were totally inadequate. Law-abiding residents were paying taxes to the municipal services provider, he said, and pointed to water scarcity and the housing authority’s non-serious attitude. “As a result, the tanker mafia was reaping huge profits,” he said.
A senior resident who has been pursuing court cases said residents, most of them senior citizens, were tired of shuttling between government offices and courts to resolve problems they did not create.
G-13 G-14 property tax: What the two agencies say
When contacted, FGEHA officer Faiz Umer Sial told Dawn that both sectors belonged to FGEHA, adding: “we provide all types of municipal services and thus we are supposed to collect taxes”. He said litigation was under way and FGEHA was pleading the case vigorously.
CDA/MCI director revenue Kashif Niaz said the Local Government Act empowers the MCI to levy property taxes. He said provision of services had nothing to do with property tax, as other charges were levied for services. Asked about the dispute, he said the Federal Ombudsman Office had given flexibility to residents: if they want to deposit tax with the MCI they can, and if they opt for FGEHA, it is their choice.
For context, the CDA owned most sectors of Islamabad, while FGEHA owns six sectors: developed G-13 and G-14, under-developed F-14 and F-15, and undeveloped F-12 and G-12. The MCI, established in 2015-16 as an offshoot of the CDA, shares a revenue directorate with the CDA that deals with taxes.
FAQs
Why are G-13 and G-14 residents getting two property tax notices?
Both FGEHA and the MCI are demanding property tax from the same households, with each claiming jurisdiction over the sectors.
Who did residents pay property tax to earlier?
Residents say they paid the tax to FGEHA for the last six years, after the Islamabad High Court and the Wafaqi Mohtasib held that the housing authority could collect it since it performed municipal functions there.
What does FGEHA say?
FGEHA officer Faiz Umer Sial says both sectors belong to FGEHA, which provides municipal services and is therefore entitled to collect the tax. He said litigation was ongoing and FGEHA was pleading the case vigorously.
What does the MCI say?
MCI director revenue Kashif Niaz says the Local Government Act empowers the MCI to levy property taxes, and that service provision is separate from property tax. He said residents have the choice of depositing tax with either the MCI or FGEHA.
Which sectors does FGEHA own?
Six sectors: developed G-13 and G-14, under-developed F-14 and F-15, and undeveloped F-12 and G-12. The CDA owns most other sectors of Islamabad.
