The Federal Board of Revenue (FBR) has scheduled the auction of 527 kanals of Bahria Town land in Tehsil Murree on March 5, 2026, to recover Rs 26 billion in unpaid income taxes for the years 2020 and 2022. The auction will take place at the FBR’s Large Taxpayers Office in Islamabad. The sale was initially planned for February 16 but was postponed.

The move comes after a Supreme Court ruling on March 18, 2025 (M/s Emaar DHA Islamabad v. CIR), which barred land developers from using the “Percentage of Completion” (POC) accounting method. The court clarified that developers selling plots must recognize income immediately under the accrual system, rather than deferring it. This reclassification turned previously recorded deferred advances into taxable revenue, leading to the Rs 26 billion liability.

This action is separate from Bahria Town’s earlier Rs 460 billion settlement related to land acquisitions in Malir, Karachi. Leveraging enhanced powers granted in the recent budget, the FBR has begun aggressively recovering dues, including seizing and auctioning property of defaulters.

The 527-kanal parcel in Mauza Kathar Sharqi, Angori Road, was attached by the FBR in September 2025. In addition, the authority has taken control of the Bahria Town Tower in Karachi, containing 145 residential units and 42 offices, and is reviewing other assets, including the Mall of Islamabad, to secure state revenue.