@Ali. Sir I think the matter is not as simple as you have stated. Please do read through the interview again and see how a number of times within the interview, the official has expressed his "hope" and "optimism" that as a result of these measures, prices of property will come down across the country.
Also the issue of withholding tax is a little more complicated than this. All banking instruments are not used for property sale/purchase only. In fact majority is used for routine transactions. By enforcing withholding tax on all instruments, govt has invented a new means of extorting money from public as few people claim their adjustments in annual returns, so the money eventually remains with the govt. But more on that later.
As for cracking down on black money, the govt is running an obscene money whitening scheme in the stock market where all black money can be whitened within three months. Why doesn't the govt apply the same glorious principles of documentation and tax base broadening over there? Why is it reserved for the property market only? There should be no doubt that there is an ill-intention involved in this move and if people actually start getting tax notices from July onwards on their property transactions then there will be an impact.
How will this impact the property market as a whole? I will comment on that after getting some further data but this is unquestionably a bad move for property.
@Kashif Sheikh. Your observation is spot on.
