Punjab's real estate is expected to generate Rs400 billion in tax revenue- The World Bank

Punjab's real estate is expected to generate Rs400 billion in tax revenue- The World Bank

# Punjab's real estate is expected to generate Rs400 billion in tax revenue- The World Bank The World Bank recently produced a study in which it found possibilities in two of the three primary areas of tax revenue collecting. The primary sectors are Services Sales Tax, Urban Immovable Property Tax (UIPT), and Stamp Duty, the latter two of which are only applicable to the real estate industry. According to the paper, if these two regions are combined, Punjab's real estate industry might produce an income of up to Rs400 billion if current digital mapping methods are used. The E&TD (Excise and Taxation Department) is in charge of collecting UIPT, whereas the BoR is in charge of collecting stamp duty. Improved and digitized land records help the two primary land-related tax agencies, E&TD and BoR, improve system analysis and coordination, as well as administer Stamp Duty and UIPT. Punjab real estate has shown the potential to generate the most tax income as a result of this unification between the two land tax bodies. According to the World Bank research, the urban housing shortage in Punjab is predicted to reach 11.3 million units by 2047. The expanding population, migration from rural to urban sections of the nation, nameless and abandoned lands, and a reduction in the current housing stock are all contributing to this imbalance. Under the Punjab Housing and Town Planning Agency, an estimated 2 to 2.5 million apartments are being built. Provincial Boards of Revenues are now in charge of mainland records in Pakistan (BoRs). All Register of Deeds, Mortgages, and Property Transfers, as well as cadastral maps, are kept here, according to person-based records. Initially, BoRs was mainly derived from just rural data. City centers were later included in this due to the unplanned spread of urban regions surrounding the city center. It is the obligation of private housing companies and cantonments to maintain track of plots and properties. According to the World Bank, the lack of standardized methods in preserving records of property rights in metropolitan areas has a big impact on revenue, and there are considerable hurdles to overcome. Longer dispute settlements, overlapping registries, inequitable taxes, and a lack of property rights information enabling authorities to carry out their tasks are among the issues. Due to a lack of transparency in property ownership, cultural constraints, forced property transfers, and other factors, women in urban areas experience considerable marginalization in their property rights and loss of inheritance. The federal and provincial administrations have realized that such obstacles may make it difficult to meet the Naya Pakistan Housing Program's target of building around 2.5 million low-cost houses in Punjab. The World Bank has recommended a $150 million loan to them to build and improve the "Punjab Urban Land Systems Enhancement Project" in order to address these concerns. This cost is broken down into four parts: $103 million for cadastral maps for Land Records Management and Information Systems (LRMIS) and digitization of records, $3 million for Land for Housing, and $3 million for cadastral maps for Land Records Management and Information Systems (LRMIS) and digitization of records. When combined with cadastral mapping systems like PropSure, LRMIS shows to be incredibly useful for keeping track of property and land rights, delivering authenticity and transparency to digital land record systems. Digital cadastral mapping aids in the integration of numerous land registrations and assigns them to a single, unique identification. This procedure aids in the creation of a smooth process that allows for transparency and authenticity in the real estate industry. The remaining funds, estimated to be over $35 million, will be used to create Land Information Systems that will integrate rural and urban land records. The project runs the danger of causing environmental harm owing to mass building. Nonetheless, it is the system's response to the existing housing and land record concerns. Follow our blog at Land Marketing for more information on the newest property trends and developments.