The Federal Board of Revenue (FBR) will auction 527 kanals of Bahria Town land in Tehsil Murree on March 5, 2026. The move aims to recover Rs. 26 billion in unpaid income taxes for the tax years 2020 and 2022, according to sources.
The auction will take place at the FBR’s Large Taxpayers Office in Islamabad. The original auction date of February 16 was postponed. The recovery follows a Supreme Court ruling on March 18, 2025, which barred developers from using the “Percentage of Completion” (POC) method for income recognition.
The court ordered developers to report income immediately under the accrual method, rather than deferring it until construction milestones. This reclassification of previously deferred revenue created a Rs. 26 billion liability for Bahria Town.
This recovery is separate from Bahria Town’s Rs. 460 billion settlement over land acquisition in Malir, Karachi. Under 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 property, located in Mauza Kathar Sharqi, Angori Road, was attached by the FBR on September 22, 2025. Officials said the FBR is also reviewing other Bahria Town assets, including Bahria Town Tower in Karachi and the Mall of Islamabad, to recover tax revenue.
The FBR confirmed that these measures are part of ongoing efforts to ensure compliance with tax laws. Authorities emphasized that the auction is a step toward stricter enforcement for defaulters and strengthening revenue collection from major corporate entities.
In other related news also read FBR Revises Property Valuation in Islamabad
This action highlights the FBR’s commitment to recovering due taxes and maintaining fairness in the corporate tax system. The auction is expected to send a strong message to other large taxpayers about the consequences of non-compliance.
