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August 2016

Property transfer cost in Pakistan increases up to 200pc

The new property evaluation method based on actual market rate will increase the cost of properties transfer by at least 100 to 200 percent.

The property dealers said the business of property sale and purchase has nosedived since the announcement of this new system and imposition of fresh taxes on real estate sector as there is more than 80 to 200 percent difference between the actual property rates and DC rates.

“Now the buyer has to pay almost Rs300,000 for registration of a plot of five marla in a lower middle class locality in Lahore suburbs against earlier rates of Rs150,000 under DC rates,” Nasir, a property agent, said.Read More »Property transfer cost in Pakistan increases up to 200pc

FBR empowered to carry out property price evaluation

Pakistan government on Monday implemented new rates of taxes, through a presidential ordinance with immediate effect, which will apply to new valuation tables for the purpose of taxation of property in major cities.

The ordinance empowers the Fed­eral Board of Revenue (FBR) to determine the fair market value of properties of areas across the country. Ear­lier, this was a job for State Bank of Pakistan.

Similarly, it was also clarified that for areas where no valuation tables have yet been notified, the district officer revenue or provincial or any other authority authorized in this behalf for the purpose of stamp duty will apply for the collection of taxes.

The new valuation tables will only be used for the purpose of calculating Capital Gains Tax (CGT), withholding taxes and for the purposes of Section 111 of the Income Tax Ordinance 2001.Read More »FBR empowered to carry out property price evaluation