LAHORE: The Punjab Land Records Authority (PLRA) has taken a significant step by instructing revenue officers throughout the province to adhere to the newly revised tax rates for both buyers and sellers of immovable properties in the ongoing fiscal year.
The Finance Act of 2023 underwent amendments that resulted in adjustments to the income tax rates and relevant provisions of the Income Tax Ordinance of 2001.
In the previous structure, the sale and purchase of properties incurred tax rates of 2 percent for individuals who were tax filers, and 4 percent for those who were non-filers.
However, the updated tax rates for tax filers have been set at 3 percent, and for non-filers, the rate has been increased to 6 percent for any sales or transfers of properties.
Previously, filers were subjected to a 3 percent tax rate, while non-filers faced a higher 7 percent tax rate when purchasing properties.
With the revised rates now in effect, the tax rates for tax filers remain at 3 percent.
However, non-filers are confronted with a more substantial tax rate of 10.5 percent when engaging in property purchases.
According to officials from the Board of Revenue, this implementation of updated rates is expected to yield increased revenue and establish a fair taxation system within the real estate sector.
Source: Pak Observer
