Referring to an amendment made to Section 68 of the Income Tax Ordinance 2001 through the Finance Act 2016, Karachi Chamber of Commerce and Industry (KCCI) President Younus Muhammad Bashir stated that the particular amendment must be immediately revoked as it will open more avenues for corruption.
“The amendment would increase corruption,” Bashir said in a statement issued on Friday.
He said that the previous system for property valuation through a pre-defined category-wise table must continue but this property valuation table needs to be revised more frequently and more categories must also be added to the table.
He urged the government to take a decision at the earliest in this regard because this amendment, which has come into force from July 1, 2016, would cause immense problems for buyers and sellers of immovable properties.
Not registered yet replied on Saturday, July 2, 2016 07:40 AM
I think this will only affect people who have not paid taxes on their wealth. Other than that its a good initiative. High property prices damage the economy of a country in a number of ways:-
1. House is a basic need and most honest people and newer generation are deprived of a basic necessity, just so that investers can make billions.
2. For every business land is a basic input from opening a restaurant to setting up a factory. With such high prices most businesses are not feasible or profitable because of such high cost or rent of commercial areas.
Therefore over all it will benefit the economy and the common man |
KK® replied on Saturday, July 2, 2016 08:21 AM
It is assumed by decision makers that all money in property is black, overseas pakistani are sending 18 to 20 billion dollars per year and all goes to property,but this tax implementation will affect remittances and even loss for govt instead of tax |
AHMAD HASSAN® replied on Saturday, July 2, 2016 08:31 AM
This is true, if GOVT will not fix then properties evaluation will be done under the table. |
AHMAD HASSAN® replied on Saturday, July 2, 2016 08:37 AM
Actually our hope is based on FM yesterday's interview on GEO. We are also waiting for story of first transfer after Eid. We are assuming that prices will be down little bit. But my question to all what if big investors add 10% in price to cover taxes. |
M Zahid® replied on Saturday, July 2, 2016 09:00 AM
Ahmad,
If big investor add 10% then will not buy and even sell until market price is rational |
