The government is likely to further raise taxes for the non-filers on the buying and selling of immovable properties in the upcoming budget (2023-24) to also document the trading of files of plots at private housing societies.
Sources informed ProPakistani that the withholding taxes are avoided at the private housing schemes during the trading of files of plots across the country. The target would be registered property agents who are involved in business transactions between the buyers and sellers of immovable properties.
Many private housing societies are involved in the avoidance of taxes by not showing actual transfers and the trading of files continues without payment of taxes. To check such activities at the private housing schemes, the FBR will take measures in the coming budget to document buyers and sellers and ensure payment of taxes.
The legal changes would ensure the payment of taxes on buying and selling of files of plots by the private housing societies and it would also ensure documentation of the immovable properties.
Presently, the government increased the tax rate from 100 percent to 250 percent in case of the purchase of property by persons who are not active taxpayers. In the case of the purchaser of immovable property who is not appearing on the Active Taxpayers List, the rate of tax to be collected under section 236K has been increased by 250 percent of the rate specified in Division XVIII of Part IV of the First Schedule. Necessary change has been incorporated in rule 1 of the Tenth Schedule to the Income Tax Ordinance.
The FBR will issue increased values of immovable properties from July 1, 2023. The FBR has started the process of the updation of valuation tables of properties across Pakistan in consultation with the provincial authorities.
The FBR has asked the senior members Board of Revenues, Sindh, Balochistan, Punjab. Khyber-Pakhtunkhwa, and Gilgit-Baltistan to issue instructions to the divisional heads/district heads for the nomination of representatives of the Board of Revenue for consultation/consideration with the teams constituted by the chief commissioners of Regional Tax Offices.
The FBR is presently pursuing the agenda of taxation reforms namely the Pakistan Raises Revenue Project (PRRP) under the auspices of the World Bank. One of the most significant components of the project aims at harmonization of the valuation of immovable properties between FBR and the provincial governments/districts.
Why not govt reduce the WHT for taxpayers? What is the point of paying tax and being in ATL when a common person get nothing but name in ATL list? Even if they increase the WHT for non filers there are still many ways of avoiding tax by not transferring the file to inverters name at all and sell directly from society office directly on profit.
Very Good Move. Ghreeb k lie ghr lyna mushkil ker dia hai. apas me hi files khridtay bechtay rehtay hain. bhai pesa business me lagao. propert me q 10 10 plot ly k rekhay hue?
Unfortunately, still way to less than businesses. Whichever govt takes the CGT on property to match business tax rates, i.e 30%, and put a 1% yearly tax on property , will have my vote for life.
This single change can help refocus Pakistan’s economy and the focus of people towards value addition.
Tax amnesties on real estate can be a useful tool for governments to encourage compliance and generate short-term revenue. However, whether it is a good option depends on a variety of factors, including the specific goals of the government, the state of the real estate market, and the potential long-term economic effects.
On the one hand, tax amnesties can encourage property owners to come forward and declare previously undisclosed assets, which can increase government revenue and encourage compliance with tax laws. Additionally, tax amnesties can help reduce the burden on tax authorities by clearing up the backlog of undeclared properties.
On the other hand, tax amnesties can also have negative consequences. For example, they can create a moral hazard by encouraging people to evade taxes in the hope of a future amnesty. They can also be seen as unfair to those who have already paid their taxes, and may be perceived as a sign of weakness, leading to further tax evasion in the future. Furthermore, tax amnesties may not address the root causes of tax evasion, such as a lack of trust in government institutions or high tax rates.
Overall, tax amnesties can be a useful tool for governments in certain circumstances, but they should be used judiciously and in conjunction with other measures to promote compliance with tax laws.
Yes, real estate is a significant driver of economic growth in many countries, and it has a significant impact on a wide range of allied industries. The real estate industry includes a broad range of activities, such as residential and commercial construction, property management, real estate brokerage, and financing.
Real estate development and construction create jobs and generate economic activity by creating new homes, office buildings, retail spaces, and other structures. The demand for real estate also drives demand for other industries such as architecture, engineering, interior design, and construction materials like cement, steel, and lumber.
Real estate also plays a crucial role in financing and investment, as many people invest in real estate to generate income or diversify their portfolios. Real estate investments can generate rental income, capital gains, and other forms of returns, which can drive economic growth and create wealth for investors.
Additionally, real estate has a significant impact on the financial sector, as many investors and businesses use real estate as collateral for loans and other financial products. Overall, real estate has a broad impact on the economy and many allied industries, making it a critical sector for economic growth and development.
Very Good Concepts sir
I second you sir
People dont declare the real prices at which deals are done. More taxes means more tax avoidance by under declaring prices.
I think government are taking rubbish step impose the the tax real estate. All the business closing but right close the real estate sector .
تیرے در سے جو یار پھرتے ہیں
پھر در بدر یونہی خوار پھرتے ہیں
جب تک عوام ان لبرلز فرنگی ایجنٹوں کو ووٹ دیتے رہیں گے یہ عیاش صلیبیوں کے نوکر سود خور حکمران طبقہ ہر طبقے کو یونہی لوٹتا رہے گا اپنی اور اپنی آنے والی نسلوں کی بقاء کے لئے ووٹ ٹی ایل پی کو دیں نہ سود ہوگا نہ ہی عوام الناس پر ٹیکسوں کا بوجھ ہوگا
Bakwas
ایک دہشتگرد جماعت کو ووٹ دو تاکہ رہی سہی کسر یہ نکالیں۔
sahi baat hai n league ko kon vote day ga ab
Put huge tax on Farm Houses.
Yas
Akmal Shaikh
BAHRIA,DHA, ASKARI,FAZIYA,NAVAL ENCOURAGE…… Rules should be implemented on them????
Well people will use 100 rupee stamp paper and write a short agreement on that no need to pay taxes, it will be like Maryam Nawaz BMW registered on motorcycle number