Written by Shahnawaz Akhter The Institute of Cost and Management Accountants of Pakistan (ICMAP) has proposed the introduction of an annual vacant urban land tax in the upcoming Budget 2026-27, aiming to improve land utilization and boost government revenue. According to the tax proposals submitted to the Ministry of Finance Pakistan, Pakistan currently lacks a comprehensive nationwide tax targeting vacant urban land. While some provinces have partial measures under existing property tax systems, ICMAP believes a dedicated framework is necessary to address long-standing inefficiencies in land use. The proposed tax would apply to undeveloped or long-term vacant urban plots, calculated as a percentage of the assessed value of the land. Authorities would rely on municipal property records and modern digital mapping systems to identify such properties. Higher tax rates may be applied to prime urban locations to discourage speculative holding and encourage timely development. ICMAP highlights that the introduction of this tax could help align urban planning with economic productivity. By discouraging land hoarding, the policy is expected to bring idle land…