Representational image. PHOTO: REUTERS
LAHORE: To overcome financial constraints and generate much-needed revenue for development projects, the Lahore Development Authority (LDA) has proposed a manifold increase in its service delivery fee.
Builders have expressed different viewpoints over the whopping increase in LDA’s service delivery charges. A builder, MA Siddiqui, told The Express Tribune that a revision of LDA’s service fee has been due for several years but the manifold increase will negatively impact the construction sector. After the imposition of new taxes, he highlighted, the property sector is already in a crisis. “Such measures will exasperate the situation.”
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The ‘Building and Zoning Regulations’ draft, made available to The Express Tribune, shows that the authority has proposed a 100-150% increase in building plan scrutiny fee for residential and public building plots. The existing tariff for first and revised plans (for total covered area) is Rs2 per square foot or Rs22 per square metre. Meanwhile, the city developer has proposed a revised tariff of Rs5 per square foot or Rs53 per square metre. Similarly, the plan revival fee (for total covered area) has been proposed at an increase of 100% after which revised tariff would be Rs2 per square foot or Rs22 per square metre.
A 50% increase has been proposed for any addition or alteration in the first or revised plan. The tariff for change of side space has been proposed to be fixed at Rs10,000 for plots up to one kanal and Rs20,000 for bigger plots.
The scrutiny fee for construction of boundary walls and gates has been proposed at Rs200 per marla for residential and Rs500 per marla for commercial plots at approved private housing schemes and LDA areas. Currently, there is no fee for change for side space or construction of boundary walls and gates.
The authority has also proposed a significant increase in the building plan scrutiny fee for commercial plots and offices. Currently, commercial buildings plan scrutiny fee for first and revised plans is Rs5 per square foot and Rs55 per square metre, but now the authority has proposed a new tariff of Rs15 per square foot or Rs162 per square metre. Similarly, plan revival fee will double at Rs6 per square foot or Rs65 per square metre.
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It has also been proposed to increase the addition and alteration plan fees by 150-195%. Proposed tariff has been fixed at Rs15 per square foot or Rs162 per square metre. Plan copying fee has also been increased from Rs10 to Rs25 per square foot or Rs110 to Rs269 per square metre. Similarly, an increase has been proposed for industrial building plans’ scrutiny fee.
An upward revision has also been proposed for subdivision of plots in all categories. Processing fee for subdivision or cancellation has been increased from Rs1,000 to Rs5,000. Fee for subdivision of residential plots in approved schemes has been increased from Rs30,000 to Rs50,000 per additional plot.
The fee for every new residential plot, carved out of less than 10 marla, has been left unchanged. Meanwhile, the fee for every new plot of one kanal and above has been increased from Rs30,000 to Rs50,000.
It has been proposed to increase commercialisation processing fee by 900% from Rs1,000 to Rs10,000. The tariff for subdivision of commercial land has also been increased, provided that the minimum size of the subdivided plot is not less than 1-kanal. Proposed tariff for commercial land subdivision has been increased from Rs30,000 to Rs50,000 per additional plot.
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The authority has proposed Rs5,000 as the processing fee for the amalgamation of plots; earlier there was no fee for this service. Documents indicate that amalgamation of plots is allowed, subject to the provision of Building and Zoning Regulations and Punjab Private Housing Scheme I Land Sun-Division Rules 2010. It was stated that amalgamation of plots may be allowed provided the property is under the name of the same owner and the land comes under the same category of residential, converted, commercial or industrial plots. In addition, upon amalgamation, the building regulations of original category/zone shall be followed for the construction of a new building.
The authority has proposed the imposition an amalgamation fee of Rs10,000 for residential plots upto 10-marla, Rs20,000 for plots up to one kanal, Rs30,000 for plots up to two kanals and Rs50,000 for plots above two kanals. Similarly, the amalgamation fee will be Rs20,000 for commercial plots upto 10 marla, Rs50,000 for plots upto two kanals and Rs100,000 for plots above two kanals. The same tariff will also apply to industrial plot amalgamation.
A flat tariff of Rs2 per square foot of total covered area has been proposed as material stacking charges at residential building and Rs5 per square feet at commercial or industrial buildings. A completion processing fee of Rs5,000 and Rs10,000 for residential and commercial buildings, respectively, has also been imposed.
The authority has also proposed to double penalties for unauthorised and illegal construction and violation of space rules. The city developer has posted draft of Building and Zoning Regulations on its website for stakeholders’ comments and feedback.
The authority is also conducting seminars with different stakeholders to seek their input as new regulations are aimed at streamlining the construction sector and encouraging vertical development in the provincial capital.
Published in The Express Tribune, July 28th, 2019.
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