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