The Asian Development Bank (THE ADB) has called for comprehensive tax reforms in Pakistan’s real estate sector, including the elimination of tax exemptions, according to news sources. The ADB recommends that the tax exemption on open plots should expire after six years and that property development should be taxed.
As per the details, the bank warns that the current tax exemptions on property development are diverting investments away from crucial sectors like manufacturing and agribusiness, which are essential for economic growth and productivity.
The ADB further emphasized the need for a standardized tax on the sale and investment of immovable property, noting that the existing tax incentives for property development have resulted in significant revenue losses for the government. These exemptions have also led to an increase in local investment in real estate at the expense of other vital sectors.
In its Pakistan National Urban Assessment Report, the ADB also highlighted the urgent need for reforms in energy and water supply management. The report suggests that improving energy efficiency in water supply, transportation, and building design is critical. Additionally, with Pakistan’s growing population, the expansion of alternative energy sources is necessary. A comprehensive water resources management plan is also essential to ensure the provision of clean drinking water and to introduce penalties for water wastage.
Furthermore, the ADB report underscores the importance of reforms in solid waste management and the transport system to support sustainable urban development in Pakistan.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
