The Federal Board of Revenue (FBR) is set to auction 527 kanals of Bahria Town land in Tehsil Murree on March 5, 2026, to recover Rs. 26 billion in unpaid income taxes for the 2020 and 2022 tax years. The auction will take place at the FBR’s Large Taxpayers Office in Islamabad, following a postponement from the original February 16 date.
This action comes after a landmark Supreme Court ruling on March 18, 2025, in the case of M/s Emaar DHA Islamabad v. CIR, which prohibited developers from using the “Percentage of Completion” method. The court mandated that developers recognize income immediately under the accrual method rather than deferring it until construction milestones, converting previously deferred amounts into taxable income and resulting in the Rs. 26 billion liability.
The recovery is separate from Bahria Town’s previous Rs. 460 billion settlement over land acquisition in Malir, Karachi. With enhanced powers, the FBR can now seize and auction properties from defaulters and has previously auctioned Bahria Town’s corporate office in Islamabad for over Rs. 2 billion. The attached 527-kanal property in Mauza Kathar Sharqi, Angori Road, was seized on September 22, 2025. The FBR is also reviewing other Bahria Town assets, including the Bahria Town Tower in Karachi and the Mall of Islamabad, to recover additional tax revenue.
