ISLAMABAD: The Federal Board of Revenue (FBR) will auction 527 kanals of Bahria Town’s land in Tehsil Murree on March 5, 2026, to recover Rs. 26 billion in unpaid income taxes for the tax years 2020 and 2022.
The auction will be held at the FBR’s Large Taxpayers Office in Islamabad. The original auction date of February 16 was postponed.
Sources said this follows a landmark Supreme Court ruling on March 18, 2025 (M/s Emaar DHA Islamabad v. CIR), which prohibited land developers from using the “Percentage of Completion” (POC) method.
The court ruled that developers selling plots must recognize income immediately under the accrual method, rather than deferring it until construction milestones. This reclassification turned previously deferred payments into taxable income, resulting in the Rs. 26 billion liability.
This recovery is separate from Bahria Town’s historic Rs. 460 billion settlement over land acquisition in Malir, Karachi. Under newly enhanced powers, the FBR can seize and auction property from defaulters. Previously, the FBR auctioned Bahria Town’s corporate office in Islamabad for over Rs. 2 billion.
The 527-kanal in Mauza Kathar Sharqi, Angori Road, was attached by the FBR on September 22, 2025. The regulator has expanded to other Bahria Town assets, including the Bahria Town Tower in Karachi and a review of the Mall of Islamabad, to recover tax revenue, sources added.
