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Lahore Real Estate Forum: Property News & Community Talk : ,

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   Hussain
Tuesday, June 14, 2016 02:56 AM 
Reply: >
I have learned that in the latest finance bill there is a proposal to authorize the inland revenues to assess the fair market value of all plots at the time of transfer. This means that the transaction value will have to be registered at a value very close to the market value as opposed to the current practice of the DC value. This can have two fold impact (1) increases taxes considerably (2) need for an increased amount of white money at the time of transaction - as a result there could be an impact on the overall activity - especially the short term investing. Pls comment if this is valid.
tax replied on Tuesday, June 14, 2016 04:12 AM 

No such proposal is under consideration. please share your source of information
Syed NY replied on Tuesday, June 14, 2016 05:45 AM 

This news is correct. Please check headlines of Nawaiwaqt Lahore edition. or Express Newspaper Lahore edition. There are various property related taxes proposed in this budget.

1) Property tax on empty plots in housing schemes
2) Increase in property tax rate
3) 3 stamp duty on DC rate in case of transfers in cooperative societies
4) CVT policy change - Instead of charging 100 rupee per square foot. proposal to charge 2% of total value
5) Proposal to give FBR authority to access the market value of plot at time of transfer (Express Lahore edition)

Minister Ayesha Ghaus-Pasha said “The major objectives of our tax policy are to discourage speculative investment and encourage people to invest in productive sectors for creating jobs,” she said. “The extension of provincial property tax coverage to include vacant plots of land is an indication of our intent and our objective.”

Source: Dawn, Express, Nawaiwaqt
User_16051® replied on Tuesday, June 14, 2016 06:32 AM 

maslan what productive sector ?? the overseas ppl who earn money by burning their blood here parked their halaal income in real estate. what they want where they should invest ?? she is advising them to open a factory while working overseas or to invest much more speculative stock market ?

or in other words they have a sound plan to loot us.
Arif M® replied on Tuesday, June 14, 2016 06:42 AM 

This market evaluation policy by FBR can have grave impacts on property market. not only short term but also long term. But i think it is still a proposal. So lets wait and see if it is passed or not.
S.Hameed® replied on Tuesday, June 14, 2016 07:00 AM 

Any proposal providing guidelines to suck the blood of the nation will be implemented.
User_16051® replied on Tuesday, June 14, 2016 07:09 AM 

yaani koi sector na chorro jaha se banda 4 paise kamaa sakay.. hum overseas log mehnat se 4 paise jorrte. or ye usay loot k panama or swiss accounts me daalte.
User_12596® replied on Tuesday, June 14, 2016 07:15 AM 

This is proposal for next year so no need to worry now,
Arif M® replied on Tuesday, June 14, 2016 07:21 AM 

User_12596 as per my understanding next fiscal year will start after 15 days.
Overseas Pakistani replied on Tuesday, June 14, 2016 07:35 AM 

We overseas Pakistani have learned one thing from the government policies that we must stop sending money to Pakistan and invest overseas. If we buy a plot to build our house in Pakistan when we go back, we have to pay tax on that plot every year. We send legal way our hard earned money home which help our country to improve its economy.Those who are imposing tax on us they take their money outside Pakistan and make properties there. We should learn from them.
User_16051® replied on Tuesday, June 14, 2016 07:47 AM 

very very very well said by brother overseas... agree to it word by word. aap ye dekhen hmaari bheji gayi remittances se iss mulk ki economy ka engine chalta hai (mainly).... or hmen kisi kisam ki koi privilege nahi hai... itni b nahi k hmen FILER ka status he de diya jae. like hum agar transaction kren to 0.6 ki bajaae 0.3% deduction ho... Fauji bhaion ko DHA me plots miljaate. hamaare liye kya hai ???
Habib replied on Tuesday, June 14, 2016 08:04 AM 

@ "CVT policy change - Instead of charging 100 rupee per square foot. proposal to charge 2% of total value"
CVT is already 2% for last 8 ys what is different

DC value was imlemented to avoid hassel of valauation of property and is good both for investor and Govt, If they implement Case to case valuation of Property then game will again go to hands of Corrupt Taxation officers and will create hassel of Valuation as necessary step before purchase, I dont think that is practical,
In my opinion the interpretation of that news is DC value may be revised to reliastic value as DC rates in some areas are about 40% of Current value of averge plot Like in Phase 9, But is others Like UET, Valencia Phase 7 it is about 60 to 70% of Market value which looks justified,
Syed NY replied on Tuesday, June 14, 2016 09:05 AM 

Habib, As per Nawaiwaqt report it is still in practice but will not be any more as per new tax policy. Check Image for details.

http://postimg.org/image/9fnhqj52p/
AHMAD HASSAN® replied on Tuesday, June 14, 2016 11:04 AM 

Once upon a time a man raised a child horse. In the beginning, he really take care of it, but as Horse grown up it became difficult for him to care his Horse. So he hired a servant. But later he felt that horse is becoming very weak. He thought that his servant must not be an honest  so he hired another servant to monitor his first servant. Just a short time after his horse died. The man was very unhappy. he asked to his first servant cause of death. His servant told him that when you Lord were taking care of horse, you were feeding 100%. When I took the job, I ate half and half Horse. But the worst thing happened that you hired another servant. You tell yourself that what we eat and what we feed to horse. Before a fix amount was going to Govt account, but now GOVT put FBR in middle that means this horse will die soon.
Aa replied on Tuesday, June 14, 2016 01:14 PM 

Yaar aap aik aik saal main 100 percent gains kar rahay ho property par, govt kee infrastructure investment aap kee investment main aur value daal rahee hai, local awaam kee puhunch say ghar bahir hain, aur aap tax denay kay liye tayaar nahin? Zyaati hai.
Adnan replied on Tuesday, June 14, 2016 03:05 PM 

when property investors who take benefits of govt spending in the form of mega project Ring Road, Defence Road Widening, Alternate Road, Orange Train , Metro Bus, etc then why feel pain when paying Tax. No matter government is corrupt but that is not a justification for not paying TAX no matter they are local or overseas.
LOYAL PAKISTANI replied on Tuesday, June 14, 2016 03:32 PM 

We should accept the reality and ready to face the music (aamaal naama) after death for Allah's blessings n favors to us.

You people are so materialistic have tiny hearts. You only know one thing to blame others and have fun just fun.

Don't do such sinful acts n beware means sudhar jao user pehlay k bari (mout death) hojaiy.

Dunyadaar Log
.
KH replied on Tuesday, June 14, 2016 03:33 PM 

Some how all of us living abroad have no problem paying taxes here and complain as the places where we live don't take any taxes. In dubai each purchase property requires payment of 4% of sale value to land department. This is how governments work so please accept it.

On the other hand you invest here because you get good returns don't suggest all of us are investing because we love Pakistan
LOYAL PAKISTANI replied on Tuesday, June 14, 2016 05:01 PM 

It is strange that we spend hard earned money to buy property but few of us are reluctant to pay proper tax.
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