As per reports, finalized recommendations are now awaiting approval from the Chief Minister.
Imposed in 2016 by Peshawar’s then-deputy commissioner, the structure tax stalled property transfers due to its high rates. In response, PTI leaders initiated action, resulting in a committee led by the Senior Member Board of Revenue (SMBR) and involving key stakeholders.
As per reports, the committee reviewed the tax and deemed it illegal under the Stamp Act of 1899, which had been enforced with FBR’s intervention. Property transfers generated PKR620 million annually before the tax, but revenues plummeted to PKR60 million after its imposition.
As per the committee’s findings, the tax was limited to municipal areas, excluding Peshawar Development Authority (PDA) zones, and was later introduced in Mardan and Nowshera.
The committee recommended abolishing the structure tax and providing a six-month exemption from the deputy commissioner’s rate to stimulate property transactions.
