Ashfaq® replied on Saturday, April 7, 2018 07:12 AM
Property Tax reforms
Property tax reforms, which was the fourth point stated by the Prime Minister can be broken down into the following points:
One per cent ‘presumptive tax’ will be paid on any purchase of property. However, the tax will be adjusted against the annual taxes of the tax-payers.
On the local and provincial level, a maximum of 1% tax has been recommended on registration of property.
At the federal level, meanwhile, Adjustable Advance Income Tax which is levied on property sale and purchase will be reduced to 1%.
The FBR rates will stand abolished from 1st July 2018, while provinces have also been requested to abolish DC rates.
Non-filers of tax returns will not be able to purchase any property of value greater than PKR 4 million.
To curb the practice of underwriting the value of property, the government will have the right to buy any property at double the declared value of the property, within six months of its registration.This will begin from the fiscal year 2019 and over the next two years, the rate will be reduced. In 2020, the government will have to pay 75% above the value, and in 2021, it will be 50% above the value to curb the practice of underwriting the value of property even further. |
