New tax is being proposed in upcoming budget on all property buying/selling for year 2016-17. Filers will have to pay 5% while non-filers will pay 8% on each transaction. Will this be good or bad?
Http://e.Jang.Com.Pk/05-02-2016/pindi/pic.Asp?Picname=617.Gif
This will destroy the property sector but I think that is what NLeague wants
Wow this is incredible…
OMG this is crazy of the government.
Disaster, rip-off
This will be blessing for genuine buyers want to buy for home construction…prices could come in reach for many…
So its mean no more investors will come in this business.Which will cause the drop of prices in property.
So who voted for PML-N and its economic wizards? Now enjoy this upcoming bust in the property market. Already there are no buyers in market as majority of the money is flowing overseas into buying properties or golden visas and with this new tax, i think property market is gone down the drain.
Non filer eg.
Plot 50 lac * 8 percent.
400, 000 tax. + transfer fee+ commission+ other tax= Pmln+Dar
Last year after the budget, I had made a projected assessment that the government is out to choke the property market of money inflows. Thats when I started the thread "New budget: Govt trying to crash property market?". At that time many people had doubts that any government could do this on purpose. If this proposal does get tabled and approved, even if the tax rates are slightly lower than in the report, I don't think anyone should be left with any more doubts.
Furthermore, if the tax was applicable only to non-filers, one could have argued that this was merely a part of their lopsided documentation drive, which conveniently excludes some other sectors. However the fact that there is a sizable tax proposal for even tax filers is a clear sign that there is a much broader agenda at work behind this proposal. I will provide some more analysis on this taxation measure after it has been approved or at least formally tabled in the parliment.
Spot on Raza. You were correct. Last year government released the teaser and tested the water. Since all the experimenting is done, now they can enforce the total plan. People will protest and demonstrate but government will then lower it a little bit to make everyone happy.
Brave PMLN Supporters... Bravo!!
Not only has this bafoon crippled the future generations by borrowing money left, right and center, and then claiming our foreign reserves have increased. He is now out to choke the golden goose of Pakistan, the property market.
@ raza sir..Sir i don't believe this step to be the last nail in the coffin but i want your opinion as i may be wrong.Let me have a detailed analysis.
Every other person in Pakistan, be it a smaller or bigger investor wants to invest in any of the running businesses. Specially part time or casual investors have no outlet except to invest in real estate.
Now where would this money be invested by these people?
1-Fixed income certificates??
Ans is definitely not as who would love to have a 400 rs monthly after investing 1 lac.
2-Production business??
Ans is definitely not..These technical and political wizards of PMLN are just so called bright minds who infact have bridges and roads in their fantasies so no possibility of curbing the energy shortages.Also running a production unit is not the job of every other person.It requires some extra efforts and expertise.
3-Retail business??
Ans is again in negative and also everyone cannot jump into it.
4-Imports exports..
Ans is it would also suffer as it would also be taxed.
So an interesting scenario is being developed so what would be the investment spot or heaven where people of Pakistan would invest?? Need your opinion sir..
@SAADI_AQUARIUS
Sad part is that we Pakistanis will still be sitting like ducks no matter how many evil taxes get slapped on us. A nation of bitccchees to the core.
I registered a toyota back in 2011 for 55K and thought it was too much. Now registration cost of same car is 80K to 120K. Same is the case with all other commodities. People keep paying like its not a big deal.
Albert Einstein said, "The world will not be destroyed by those who do evil, but by those who watch them without doing anything”
They are trying to catch those which are easy to prey... They will not go after the real money making machines...
@ imran khan..Sir totally agreed.It is not the politicians who are corrupt to the core, it is we, the corrupt Pakistanis who are ready to bear and accept their corrupt criminal practices without caring for the country and larger interest.
Khan bhai these idiots themselves are tax evaders who donot want to pay taxes and they want the salaried class to pay taxes for their illicit activities and luxuries even though Pakistan's majority tax revenue is paid by salaried individuals.
@ Imran khan...Sir you are right, it is not the politicians who are corrupt to the core, it is we, the pakistanis, who are corrupt and ready to bear and accept their illicit and illegal activities without caring for country and larger interest.
@ khan bhai..Sir you are right..These idiots who themselves are tax evaders are not ready to contribute a penny to this country and they want the salaried individuals to pay more even though majority of tax revenue is collected from the salaried individuals and they want to pay more for their luxuries.
The way they have borrowed the loans from international monetary agencies, i feel that we are not so far from declaring bankruptcy, just like Greece..Or people Pakistanis would definitely think to compromise on their national interest.It takes some guts, courage ad grace to declare bankruptcy and serve your national interest even in adverse conditions.
@Asad Malik. Thanks. Yes that is the normal modus operandi of the government in Pakistan. First try to slip a foot in the door and then gate crash into the house.
@Saadi_Aquarius. Saadi sb I appreciate your comments. However, like I said earlier in another thread, this is the season of "planted" stories just before the budget. Govts use these "leaks" either to test new proposals or to coerce the public with "upcoming crackdown". In any case, we need to view the budget in totality to reach any conclusions about what the government is actually trying to do. Lets wait for the budget to be tabled in the parliament, then we can have a more meaningful analysis. Besides, budget proposals don't become effective till 1st July, so we will have a full month to discuss.
@Mr Khan. Thank you for sharing that news item. I have been saying this for the last one year that the government is deliberately trying to create a confusion between the terms "tax payer" and "tax filer", so there must be some mala fide involved in doing this. Looks like the cat has started peeking out of the bag.
One more thing, the concept of services to be rendered against the paid taxes is simply absent from our minds. Infact what are we already getting against the taxes we pay? Load shedding and energy shortages, broken roads, sewerage mixed water to drink, pathetic medical facilities, third class or even below than this rank schools and colleges etc and they want the common man and salaried class to pay more even after they are not ready to pay a penny themselves.
These so called economic wizards in fact munshis and thekaydaars are more interested in catching non filers rather than tax evaders, so you can better judge their priorities.
Raza sb, but once tabled in the parliament, then there will be no way out.... It will be implemented in one form or the other may be at some reduced rate...
Regards