Islamabad: The Federal Board of Revenue (FBR) has announced plans to auction 527 kanals of Bahria Town’s land in Tehsil Murree on March 5, 2026, to recover Rs26 billion in outstanding income tax liabilities for tax years 2020 and 2022, sources confirmed.
The auction will take place at the FBR’s Large Taxpayers Office (LTO) in Islamabad after the earlier scheduled date of February 16 was postponed.
The move follows a landmark ruling by the Supreme Court of Pakistan on March 18, 2025, in the case of M/s Emaar DHA Islamabad v. CIR. The judgment barred property developers from using the “Percentage of Completion” (POC) accounting method and directed them to recognize income under the accrual basis at the time of sale.
As a result of the ruling, previously deferred revenues were reclassified as taxable income, creating a Rs26 billion tax demand against Bahria Town.
Officials clarified that this recovery action is separate from Bahria Town’s earlier Rs460 billion settlement related to land acquisition in Malir, Karachi. Under expanded enforcement powers, the FBR can attach and auction properties of tax defaulters. The authority had earlier auctioned Bahria Town’s corporate office in Islamabad for over Rs2 billion.
The 527-kanal property located in Mauza Kathar Sharqi, Angori Road, was attached on September 22, 2025. Sources further revealed that the FBR is also reviewing additional Bahria Town assets, including Bahria Town Tower in Karachi and the Mall of Islamabad, as part of broader efforts to recover pending tax revenues.
