Sindh set to launch digital collection of property transfer tax

KARACHI: The Sindh government has started collecting Immovable Property Tax (IPT) through the Board of Revenue’s e-Stamping platform, which is operated by the Sindh Information Technology Company (SITC).

The development was announced at a ceremony held at the office of Local Government Minister Nasir Shah, where a memorandum of understanding was signed. The agreement was concluded between Sindh Bank, the National Bank of Pakistan and the Bank of Punjab in collaboration with the Board of Revenue (BoR), and the local government and information technology departments.

According to the details shared at the event, the move is aimed at shifting property transfer-related tax collection toward a fully digital system across Sindh. Officials said the arrangement is intended to improve transparency, efficiency and the overall process of revenue collection in the province.

"This initiative will not only enhance transparency but also significantly help eliminate corruption," said Nasir Shah, speaking at the ceremony, adding that the system for collecting taxes on property transfers at the local council level is being completely digitised and simplified.

The minister said the existing tax collection mechanism is being upgraded and linked with the Board of Revenue’s online system so that property transfer procedures become faster, easier and more transparent. He said direct collection of stamp duty and other taxes would strengthen local councils financially and improve their performance.

He also said the local government, the Board of Revenue and the three banks are being connected through a unified online system, which would make tax collection more efficient and dependable.

Over one million challans processed

Figures shared at the ceremony showed that since SITC took over operational control of the e-Stamping system in September 2025, the platform has processed more than one million challans and generated over Rs18 billion in revenue through 431 bank branches across Sindh.

SITC Chief Executive Zainulabedin Shah said the digital setup that had already been used for e-Stamping was now being expanded to municipal tax collection as well. He said the same infrastructure would support greater efficiency, transparency and convenience for citizens.

Under the new mechanism, IPT will be generated automatically together with the e-Stamping challan. The tax will be calculated at one per cent of the total property value, and no separate challan will be needed.

The agreement marks a further step in integrating tax collection related to property transfers with digital systems already in use by the province, with the government saying the new arrangement is designed to streamline payments and improve the reliability of the process.