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Audit Reveals Gaps in Revenue Realization from Under-Guided Commercial Lands

A recent audit has revealed significant gaps in revenue realization from under-guided commercial lands, exposing shortcomings in the existing property valuation and taxation framework. The audit findings show that several commercial plots, particularly in rapidly developing urban corridors and high-demand zones, were registered at guidance values that lagged far behind their actual market prices. This discrepancy has led to substantial losses in potential stamp duty and registration fee collections for the government, undermining fiscal targets tied to real estate sector performance and creating distortions in property transaction transparency.

The audit report points to multiple factors behind the under-realization of revenue, including delays in updating guidance rates, inconsistent application of land reclassifications, and lack of integration between market transaction monitoring and official valuation systems. It also highlights that speculative transactions and undervalued registrations have proliferated in areas where guidance values were not adjusted in tandem with infrastructure upgrades, commercial activity growth, and urban expansion. As a result, while market prices surged, official revenue collections remained disproportionately low, prompting urgent calls for systemic reforms.

In response to the audit findings, authorities are considering a comprehensive overhaul of the commercial land valuation process. Measures under discussion include more frequent and data-driven guidance value revisions, the adoption of digital monitoring tools, stricter compliance enforcement, and the introduction of dynamic, location-sensitive valuation indices. By closing the gap between market value and official guidance, the government aims to enhance revenue generation, promote greater market transparency, and ensure a fairer, more sustainable commercial real estate environment that supports both public finance goals and equitable urban development.

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