Lahore Real Estate Forum

Start NEW Topic Or Post Advertisment

                                                          
 
Back to Forum |

Property tax,

(100231)
   ahsan
Wednesday, May 4, 2016 06:04 AM 
Reply: >
Dear all
How do see the effect of proposed tax @ 5 ~ 8 % on property transaction in federal budget 2016 .
Comments please
Chaudhry Waqas replied on Wednesday, May 4, 2016 06:09 AM 

Extremely disastrous. It will discourage many short to medium term property investors which are infact the majority in this business. It seems that the honeymoon period is way over now and tough times ahead for the property holders and investors
Shuaib replied on Wednesday, May 4, 2016 06:22 AM 

Is it true ?? This will be biggest crime of this noon gunna after 90s foreign currency account freeze. Waqas sahab agar ye hogya to phir rates ka kya hoga ??
humayun replied on Wednesday, May 4, 2016 06:53 AM 

This question really need input from property guru like CMY sahib. thanx in advance
Darwaish replied on Wednesday, May 4, 2016 07:14 AM 

It will discourage speculative buying and selling. The prices have gone out of reach for genuine buyers who want to have a piece of land for their house construction. Let us support this tax move and help our country and countrymen.
M Zahid® replied on Wednesday, May 4, 2016 07:35 AM 

There are already few taxes levied on property transaction,
a) Capital value tax (CVT)
b) Stamp duty
c) Advance tax
d) Bank charges which are suppose to go to 0.6%.
The proposal is being discussed 2% for non filers and some sources quoting 6% but if implemented then it will clearly have impact on remittance investment into property.
If the profit is to be docketed in govt pockets then who will bring investment to Pakistan if there is no gain or very meagre gain.
FBR replied on Wednesday, May 4, 2016 07:35 AM 

Impossible that govt would be imposing that high percentage tax on transaction of property. Govt is already under pressure they will avoid any of such moves to earn the wrath of massess
Babar Awan replied on Wednesday, May 4, 2016 08:02 AM 

PMLN govt is considered as business friendly govt, but their current tenure has been marked with scandals, imposing high percentage of taxes etc. Businesses have not boomed as expected except their own, roads etc. however, at the last leg of their tenure, imposing such high tax will hurt them in next elections, so probably they will avoid.
Muhammad Asif® replied on Wednesday, May 4, 2016 08:08 AM 

It will not only effect real estate but also foreign remittance to certain extent.
Lets wait & see.
Arif replied on Wednesday, May 4, 2016 08:31 AM 

Ishaq dar has completely failed in overhauling the economy. Considering their recent track record, imposing such tax is not impossible for them. They have to do it to collect more taxes and to please IMF guys. Lets see what happens.
humayun replied on Wednesday, May 4, 2016 10:41 AM 

Dear ahsan sahab! Kindly tell us that what is the source of this news.i shall be really greatful.
Mustafa replied on Wednesday, May 4, 2016 11:47 AM 

Such taxes are not imposed by governments as we get closer to the elections. The fact that this tax will not be imposed will give a huge jump to the property when it witnessed the joy of no new taxes. It is common to create fear of additional taxes and then surprise the nation with no new taxes near election years. This strategy is tried and tested worldwide. Also, with people like Donald Trump contesting elections in the US, we should expect A LOT of overseas money to flow into property in Pakistan till November. After, Hillary and if she wins the election as expected the property will stabilize for a year. The fundamentals are in favour of money flowing into Pakistan so not too much to worry at the moment.
AhmetKildir® replied on Wednesday, May 4, 2016 12:10 PM 

May kuch boloonga in choron kay baaray may to bolain gaye kay bolta hai :P
Shuaib replied on Wednesday, May 4, 2016 12:23 PM 

@Kildir

Boss its an open forum.. aap bolain (within tehzeeb aap kuch bhi keh sakte ;-) which i m sure you will.
NT replied on Wednesday, May 4, 2016 05:31 PM 

Source please?

There is no such proposal under review for budget, I think Ahsan is creating hype on this issue.
Jameel Mughal® replied on Wednesday, May 4, 2016 07:45 PM 

The Tax will open gate for more biana and open file sellers and will discourage real buyers, Govt may be doing it to slow down property business as for last 3 yeats there is no stop and if bubble bursts then also Govts are held responsible. Today People are ready to buy Flats in 3 to Cror in Lahore. These people will regret when these Flats will be handed over.
still it is a rumor and I am sure there will be some bargain like happened in 0.3% Tax on Bank transactions.
In 1994 The Tax on the transfer of property was 20% or more at that time DC rates were not there. We Bought a plot in 180K [documented Value] and real value about 300K we Paid about 30 K transfer fees out of which 28K were stamp papers,
The Govt did a lot of reforms and rate was decreased and boom of 2000 to 2005 happened it was co Factor, in 2007 I transferred a plot in Valencia 19 Merla in 27K transfer fess etc, price was 2.7 Million. Today you will pat about 6 lac transfer.
If you talk of 6,7% all is Possible people pay 30% Tax after selling houses in Europe. [deferred Tax]
People of Pakistan need to learn Tax Culture
Reborn® replied on Wednesday, May 4, 2016 08:02 PM 

I think this news is leaked by govt to check the reaction. Again 5-8% will be reduced to 3-5% like they did for filer,non filer thing 0.6 reduced to 0.3%.
This tax will be imposed on us.
Plus we cannot compare West taxes, as they provide facility to their citizens also.
Idher tu nahanay k liay pani ka tanker bhi apnay paison sai kharidna perta hai.
Babar Awan replied on Thursday, May 5, 2016 04:38 AM 

@Jameel Mugha, good point by you, that european people pay 30% Tax after selling houses in Europe. [deferred Tax] & People of Pakistan need to learn Tax Culture, i would suggest then the Pak Govt also need to learn european govts culture, means as they spend on welfare of people etc
Nawaz replied on Friday, May 6, 2016 02:11 AM 

@AhmetKildir, Boss aap bilkul theek theek sumjhay. Kum az kum aik chor ko choron kay baray mein bolnay ka haq nahin.
>