CDA Forms Panel to Reconsider Transfer Fee Hike
Amid mounting disquiet among real estate experts and the business community, the Capital Development Authority (CDA) has formed a seven-member committee to review its recent decision to quadruple the property transfer cost inside Islamabad’s jurisdiction.
The decision followed substantial criticism from stakeholders when the CDA increased the transfer fee from 1% to 3% of the assessed property value. The Islamabad Chamber of Commerce and Industry (ICCI), along with other real estate groups, cautioned that the hefty rise will discourage property sales and worsen the market’s already slow condition.
In response to the criticism, the CDA Chairman ordered the review committee to be established, indicating a desire to have discussions and maybe reevaluate the new pricing schedule.
Key CDA officials like Director General Law Muhammad Naeem Dar and Director General Building Control Faisal Naeem Beg will be on the committee, which will be chaired by CDA Member Finance Tahir Naeem Akhtar. In order to ensure that issues from the private sector are adequately represented, it also comprises ICCI leadership, including President Nasir Mansoor Qureshi, Senior Vice President Abdul Rahman Siddiqui, Vice President Nasir Mehmood Chaudhry, and Convener Muhammad Ishaq Sial.
The committee’s main duties, as stated in the official CDA statement, are to assess the recently put into effect transfer regime, identify stakeholder issues, and suggest possible changes or streamlined procedures to improve process efficiency. The team has also been instructed to look into other ways the CDA could raise money, like changing the property tax rates to reflect current market values.
The evaluation process will be based on structured conversations between the CDA, ICCI, and representatives of the larger business sector. Within five days, the committee is supposed to finish its evaluation and deliver a report to the chairman of the CDA.
According to people familiar with the talks, a solution may be in the works, with both parties inclined to lower the suggested transfer charge from 3% to 2%. This would be a compromise that would help reduce tensions while still bringing in more money for the authority.
The real estate industry, which is already feeling the effects of regulatory reforms and market slowdowns, has stressed that a sudden increase in transfer fees could further deter investment and cause a precipitous drop in real estate transactions.
The CDA’s decision to start a discussion has been generally embraced by stakeholders, who see it as a step in the right direction toward resolving important policy issues through cooperation and consultation rather than unilateral action.
The business community is cautiously hopeful that a just and long-lasting solution will be found as the committee continues its work.
Also Read This
