SEED

Urban Immovable
Property Tax

over 90% of the population of the province lives within two hours travel time to a city

Urban Immovable Property Tax

Overview

Khyber Pakhtunkhwa (KP), with 35 million people who contribute roughly 10 per cent of Pakistan’s GDP, is urbanising rapidly. According to 2017 census provisional results, 5.7 Million people live in urban areas of which alone 1.97 Million reside in the district of Peshawar – this is 34% of the total urban population of Khyber Pakhtunkhwa. Cumulatively, only four districts – Peshawar, Swat, Mardan and Dera Ismail Khan account for 60% of the total urban population of the province. While 82% of the province’s population is classified as rural, over two-thirds of the population of the province lives within a travel time of one hour in a city, and 90% of the population of the province lives within two hours. The rapid urbanization and development of urban clusters is promising for transforming the urban economies into hubs of economic activities but have implications for the provision of services by the government.

In the past two decades, the province’s urban areas have grown at nearly three per cent per annum. This, however, has also led to slums, congestion, stressed municipal infrastructure, and other adverse effects of densification. If these are to be addressed while ensuring cities fulfil their potential as engines of growth and development, revenues have to be raised.

One measure in this regard can be Urban immovable property taxes (UIPT), the contribution of which to provincial revenues is five times lower in KP (0.5 per cent) than in neighbouring Punjab (2.5 per cent). GoKP aims to strengthen the province’s UIPT system.

 

PROPERTY TAX COLLECTION PERFORMANCE
IN KP IS BEHIND REGIONAL COMPARATORS

Click to view webinar

Webinar & Pilot project

Progress

GoKP, with support from SEED, has conducted a webinar with government stakeholders, notable researchers, academics and practitioners to identify taxation reforms to increase provincially raised revenue. The resulting policy note on reforming UIPT in Khyber Pakhtunkhwa includes a review of the work done in Punjab.

SEED has also carried out a pilot intervention that used satellite imagery to identify unreported or misreported properties in a pilot area of Peshawar. The pilot also helped validate and enrich data of a recent UIPT survey conducted by E&T department.

Urban Immovable Property Tax

Webinar & Policy paper