Government unveils housing sector relief plan, tax cuts proposed

Prime Minister Sharif to hold key meeting on housing relief package and tax changes.

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The government has prepared a relief package for the real estate and housing sector aimed at benefiting the public.

The package, devised by the Ministry of Housing's 11-member task force, includes significant tax revisions and recommendations to revitalise the sector, Express News reported.

The task force's proposals, presented to Prime Minister Shehbaz Sharif, suggest several measures to support the sector.

Among the key recommendations are allowing the construction of three-storey houses, offering full tax exemptions for first-time homebuyers, and reducing property transaction taxes.

The task force has also recommended lowering the property sale tax from 4% to 2%, cutting the buyer's tax from 4% to 0.5%, and eliminating federal excise duties on property transactions.

Furthermore, the proposal includes providing housing subsidies for low-income individuals and offering loans for home construction with repayment periods ranging from 5 to 20 years.

Prime Minister Sharif has scheduled a crucial meeting on February 3 to review the recommendations and make a final decision on the matter.

Few days ago, the Punjab government decided to establish a Special Planning Authority to regulate urban and rural land use, aiming to curb the rise of illegal housing societies across the province.

Chief Minister Punjab Maryam Nawaz chaired a high-level meeting where proposals were reviewed to introduce uniform zoning and land-use regulations for commercial and residential areas.

The plan also focuses on making housing schemes environmentally friendly and pedestrian-friendly, aligning with modern urban standards.

The Punjab Special Planning Authority (PSPA) will oversee the zoning of commercial, residential, and agricultural land, while also developing district land-use plans.

These plans will be reviewed every four years to ensure sustainable urban growth.

To strengthen enforcement, each district will have a special land-use committee, headed by the deputy commissioner, with representation from key service providers, including WAPDA, Sui Gas, and WASA.

The government also plans to introduce a digital monitoring system to track and prevent land-use violations in real-time.

During the meeting, the CM ordered an immediate resolution of pending housing sector applications and called for daily progress reports on Lahore’s development plan.

Officials briefed her that e-tendering had resulted in significant cost savings, with 414 development schemes already in progress under Phase One of the Lahore Development Plan.