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CVT changes reported in today paper,

(102750)
   Syed NY
Tuesday, June 14, 2016 09:08 AM 
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Habib, I was not able to attach this file in the ongoing discussion. Please check this image for details.
User_16051® replied on Tuesday, June 14, 2016 09:52 AM 

"Qabza lene k 2 saal tak taameer nahi ki gayi"".... iska kya matlab... if one plot falls in posession area since more than two years but he didnt take formal possession of it then will he be taxed ??
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.
Ahmad786® replied on Tuesday, June 14, 2016 11:39 AM 

Is hisab sey Raiwind Farm house per to koi tax na howa :)
FAA.awan replied on Tuesday, June 14, 2016 11:44 AM 

very nice comments.
Abdal® replied on Tuesday, June 14, 2016 12:35 PM 

Do not get panicked, I have read the Finance Bill 2016 and am of the view there is only marginal increase in tax which apparently will not be significant considering the market value of the properties. Let me reiterate these: 1) STAMP DUTY will be charged as the same existing rate @3%. The only difference is currently it was charged on the "amount of consideration" that is on the declared value of transaction with no minimum or maximum. Now, it will be levied on DC Rate / Valuation Tables. Practically, almost all the transactions were declared at DC rate but this amendment has removed any ambiguity if it existed. 2) Tax on Possession Plots wherein no construction done 2 years after original possession. It will have some impact depending on the rate / valuation table notified by the competent authority. 3) There has been cost impact regarding Sale / Purchase on Power of Attorney, which has been replaced from Rs 1,200 stamp duty to 2% of DC Rate. 4) Similarly, CVT on Power of ATtorney which was Rs 100 per square feet has been done away as it has already been covered under Stamp Duty of 2% of DC value. This is my understanding and can be discussed in a positive manner to have a better view.
Abdal® replied on Tuesday, June 14, 2016 12:51 PM 

I am reposting it as the earlier posting resulted in error message. Some times even after an error the post appears after some time. Seems to be an issue with the web/ hosting. Any way, shifting to the topic, advise is do not get panicked, I have read the Finance Bill 2016 and am of the view there is only marginal increase in tax which apparently will not be significant considering the market value of the properties. Let me reiterate these: 1) STAMP DUTY will be charged as the same existing rate @3%. The only difference is currently it was charged on the "amount of consideration" that is on the declared value of transaction with no minimum or maximum. Now, it will be levied on DC Rate / Valuation Tables. Practically, almost all the transactions were declared at DC rate but this amendment has removed any ambiguity if it existed. 2) Tax on Possession Plots wherein no construction done 2 years after original possession. It will have some impact depending on the rate / valuation table notified by the competent authority. 3) There has been cost impact regarding Sale / Purchase on Power of Attorney, which has been replaced from Rs 1,200 stamp duty to 2% of DC Rate. 4) Similarly, CVT on Power of ATtorney which was Rs 100 per square feet has been done away as it has already been covered under Stamp Duty of 2% of DC value. This is my understanding and can be discussed in a positive manner to have a better view.
Jameel Mughal® replied on Tuesday, June 14, 2016 03:01 PM 

I am Paying stamp at 3% for last 4,5 years may be rate was less in 1 to 5 Marla Category and they are equalizing, or it is taking about the agri or other Land which does not come in DC rate,
Already we are paying 2% CVT, 3 % Stamp and 2% advanced income Tax and 0.3% on all pay orders it is for last many years
The only new thing we may have to face is re valuation of DC rates which are Changed every 2,3 years
I am astonished many people are ignorant what they were paying
LOYAL PAKISTANI replied on Tuesday, June 14, 2016 03:21 PM 

We have to follow rules as in other countries are.

PM is trying hard for success of the country. Small people always think small and write as they are tamed by their parents.

Think optimistic and say thanks to Allah who has given us wealth respect n health.
Just Chill replied on Tuesday, June 14, 2016 04:34 PM 

yes Mr Loyal. Keep begging money from the whole world and keep dreaming of your respect.
We all know the worth of Pakistan is zero due to these begger leaders whose own families depend on West for living,money and safety.
They don't keep their kids n investment in Pak and ask us overseas people to invest here!
Still they have fools like u for their campaign. You r not loyal to Pakistan. You r biggest ghaddaar.
LOYAL PAKISTANI replied on Tuesday, June 14, 2016 04:52 PM 

We have no choice as Imran Khan is having his sons in Jews family just for the sake of ancestral huge millions of pounds.

PPP is ally of PTI and both rubbish. We need stability so need NS guidance n continuity for other 10 years.

Ithink you are treating me like you treat your real parents and brothers. So bad training not your fault like son like father and even rustic IK.

COUNTRY WILL INSHAALLAH UNDER THE LEADERSHIP OF ALL SHARIFS LIKE NAWAZ RAHIL & SHAHBAZ SHRARIF.

SO WAKE UP AND ACCEPT RESLITY
.
MIT® replied on Tuesday, June 14, 2016 06:06 PM 

Both of you (Loyal Pakistani & Just Chill)are posting your viewpoints unrestricted being unregistered users. Be brave to get listed with proper IDs, to be credible on this forum. Now while Just Chill has very valid arguments, he could have restrained personal attack on Loyal Pakistani, and it is equally shameful that Loyal Pakistani has done more damage to himself by talking in return so bad. Just Chill is correct as "Beggars are never Choosers".
Tajammal replied on Tuesday, June 14, 2016 07:11 PM 

Dear All,
A.O.A
Forget About 3% Stamp Duty. It is already same as well.

Attention:
Government of Pakistan has imposed Advance With Holding Tax on Property Transaction at the following Rates.

Filler 2% (Above and Equal the Property Worth Rs. 3.0 million)
Non-Filler 4% (Above and Equal the Property Worth Rs. 3.0 million)

Its mean Transfer Charges of Any Phase has been Increased upto Rs. 100,000/- (minimum) for filer and Rs. 200,000/- (minimum) for Non-Filer. On the property Worth equal and above Rs. 3,000,000/- (3-Million) i.e 1-Kanal Plots (In Some Phases 10-Marla also).

2% and 4% Advance With Holding Tax in Addition to Already applicable Withholding tax. And the Zero rated withholding tax limit has also been enhanced up to 5 years.

10% Capital Gain Tax already paying the property holders to the Government.

This will effect the real estate sector badly.
and I think in all the phases the property rates will drop upto 15 to 20% minimum. (So be Careful).
Kureshi® replied on Tuesday, June 14, 2016 07:48 PM 

Abdal sb and Jamil sb, thank you for insightful comments. Please keep us postedbon this matter as you seem to have good command on this subject
humayun replied on Tuesday, June 14, 2016 10:51 PM 

Plz tell what are taxes for seller? Regards.
Ahmad786® replied on Wednesday, June 15, 2016 03:29 AM 

If PM and his kids are paying taxes happily then I am glad to do so. They invest abroad and in off shores but ask for tax even on empty plots just because I donot have enough money to build house there.
AhmetKildir® replied on Wednesday, June 15, 2016 05:51 AM 

I don't mind paying taxes. But paying taxes in Pakistan is so painful as you know the money is going to Jeddah or Panama. I love paying zakat though as I know it's actually going to a needy end user.
Khan replied on Friday, June 17, 2016 03:15 PM 

We have been discussing taxes levied on property but no voice has been raised on the bribe given to sub-registrar & Tehsildar/Patwari in getting registration of sale deed and getting copy of mutation. The bribe these people charge rather extort is on a higher side. It's seems we have become immune to this bribeism & we don't mind paying but we raise eye brows when we are forced to pay taxes. We must raise our voice to this corruption & try to discourage. Recently I'm undergoing the process of registration & forced to pay additional amount of bribe but if I resist not to pay bribe I will be subjected to various uncalled for issues.
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