Multioworks: The Khyber Pakhtunkhwa government has made a significant decision aimed at easing the burden on property owners and prospective buyers. It plans to propose to the federal government a reduction in the provincial share of property tax, effectively halving it. Additionally, there are plans to decrease the tax on property purchases valued up to Rs. 10 million.
Muzammil Aslam, Advisor to the Chief Minister on Finance, shared with the media that currently, property tax in Khyber Pakhtunkhwa stands at 23%, with only 6% allocated to the provincial government. The remainder is collected by the federal government. The proposed change seeks to slash the provincial tax rate to 3%, offering relief to property owners.
Furthermore, the proposal recommends a review of the federal government’s policy regarding property taxation. Currently, the federal government imposes a 6.5% tax on tax filers, with a 10% increase for non-filers, regardless of the property value. Aslam emphasized the need for revising these conditions, especially for properties valued up to Rs. 10 million, to facilitate home ownership for low-income citizens.
This move by KP government reflects the government’s commitment to making property ownership more accessible and affordable, particularly for those belonging to the economically disadvantaged segments of society. Multiworks welcomes this initiative, recognizing its potential to positively impact property owners and buyers in the region.
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