Islamabad: The Asian Development Bank (ADB) has put forward recommendations for Pakistan to revamp its tax policies in the real estate sector, including reassessing exemptions on open plots and imposing new taxes on property development. These reforms aim to boost investments in sectors like manufacturing and agribusinesses by addressing current tax incentives that may be hindering growth.

According to Zameen.Com, the ADB suggests that existing tax exemptions, which have been in place for six years, need a thorough review. It advocates for the introduction of taxes on property development to mitigate potential revenue losses. The proposal also includes a standard tax rate for all real estate transactions to simplify the tax regime and improve revenue collection. Furthermore, the Pakistan National Urban Assessment Report underscores the need for enhancements in energy efficiency, water management, and urban infrastructure to support the country’s expanding population needs.