The Capital Development Authority (CDA) has sent a summary to the interior ministry for onward submission to the federal cabinet, seeking a reduction in commercial charges for hotel and motel projects in the federal capital.
According to sources, CDA had revised land use conversion and commercial rates for all commercial projects including hotels and motels, in June this year, after an eight-year gap. The previous revision took place in 2017.
However, the hospitality sector strongly opposed the updated rates, calling them excessively high and financially unviable. Industry representatives raised the issue with the Prime Minister’s Office, prompting the PM to forward their concerns back to CDA for review.
The matter was subsequently placed before the CDA board on October 21 under the agenda titled “PM directive regarding grievances on Floor Area Ratio (FAR)”.
After detailed deliberations, the board agreed that hotels and motels should be treated differently from other commercial ventures and did not oppose a reduction in the revised charges.
The board then decided to refer the issue to the federal government for a final decision, and a summary seeking relief for the hospitality sector has now been forwarded to the federal cabinet
