The Federal Board of Revenue has announced plans to auction 527 kanals of land owned by Bahria Town in Murree on March 5, 2026. The move is aimed at recovering Rs 26 billion in unpaid tax liabilities related to the tax years 2020 and 2022.
The action follows a major ruling by the Supreme Court of Pakistan, which barred property developers from using the “Percentage of Completion” accounting method. Under this method, developers could delay recognizing income until projects reached certain stages. The court’s decision reclassified deferred advances as taxable income, leading to revised assessments and large tax demands.
Officials say this case is separate from the Rs 460 billion Malir settlement case. The current recovery effort strictly relates to unpaid income tax based on updated accounting treatment.
In recent months, the FBR has been using expanded legal powers to recover outstanding dues. Properties including Bahria Town Tower in Karachi and offices on Park Road in Islamabad have either been attached or listed for auction. Authorities may also review assets such as the Mall of Islamabad to secure public revenue if dues remain unpaid.
Tax experts note that the ruling could have broader effects on the real estate sector, as developers may need to change how they report income. The outcome of the Murree land auction will be closely watched by investors and regulators alike.
