PESHAWAR: People across Khyber Pakhtunkhwa have welcomed the provincial government’s decision to end taxes on five marla houses, calling it a much-needed relief for the middle and lower-middle class.
The KP cabinet, while approving the Rs1.52 trillion budget for FY 2026-27, announced the abolition of certain property taxes on residential units up to five marla. The move was part of broader tax reforms aimed at reducing the financial burden on ordinary citizens.
Residents of Peshawar, Mardan, Swabi and other districts said the tax exemption will directly benefit families who built small houses on limited plots. “Five marla is all a common man can afford. Paying annual tax on it was unfair,” said Gul Rehman, a resident of Hayatabad.
“This decision will save thousands of rupees every year.” Property dealers and housing scheme owners also hailed the step. They said the tax removal will encourage construction of small residential units and help reduce the housing shortage in urban areas.
Finance department officials explained that the tax relief targets only owner-occupied houses up to above five marla. Commercial properties and larger residential plots will remain under the existing tax structure. Citizens on social media praised CM Sohail Afridi’s government, terming the decision “pro-people” and “timely” amid inflation.
Many said the Rs48 billion deficit budget still manages to give direct relief without burdening other sectors. The KP government stated that abolishing taxes on five marla houses aligns with its policy of supporting low-income families and promoting affordable housing in the province.
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