| Peshawar: A significant relief for property owners in Peshawar is on the horizon as a government committee has recommended abolishing the controversial structure tax on buildings. The finalized proposal now awaits approval from Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur.
The structure tax, introduced in 2016 by Peshawar’s then-deputy commissioner, led to a sharp decline in property transactions due to its high rates. Before its imposition, property transfers generated PKR 620 million annually, but revenues plummeted to just PKR 60 million.
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The committee, led by the Senior Member Board of Revenue (SMBR) and comprising key stakeholders, reviewed the tax and deemed it illegal under the Stamp Act of 1899. The tax, limited to municipal areas and later extended to Mardan and Nowshera, excluded Peshawar Development Authority (PDA) zones.
According to reports, the tax was implemented based on recommendations from the Federal Board of Revenue (FBR). Public backlash prompted actions against it, leading to the formation of a review committee. The committee has proposed abolishing the tax and recommended a six-month exemption from the deputy commissioner’s rate to boost property transactions and revitalize the real estate market.
The proposal now lies with the Chief Minister, whose approval could mark the end of the unpopular tax and bring much-needed relief to property owners and buyers. If enacted, the move is expected to revive property transactions and boost revenue generation across the region.
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This recommendation signals a proactive step toward reforming property tax policies and revitalizing Peshawar’s real estate sector. |
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