May be it brings positive change Investors have made it impossible for real buy to buy anything sepcialy middle class who lives in pakistan it’s easy to buy house in europe than pakistan. People in property says 50 or 60 lak like its nothing but for middle class it take life to save it
Purchasing will decrease in real estate
Property prices in Pakistan are at least 25-50 times higher than they should be given the state of affairs here as compared to a civilized country. The reason being that all the black money (e.g. Bribe), un-tax-paid money and all undocumented money is being invested in empty plots. This is causing massive unemployment because buying and keeping empty plots is not a legitimate business as no economic activity is taking place.
If 10% of the money held up in this stupid so-called business gets invested into real businesses that generate products, services and employment, this measure will be a huge blessing for the masses while bringing the prices to a realistic level for such a backward country.
At current prices you can buy bigger piece of land in international city with great law and order, clean environment, prosperity and massive opportunities for employment.
Prices here need to be corrected for the sake of majority of Pakistani population.
Empty residential plots must be reserved for housing and not as a parking space for black money.
Todays Jangnewspaper breaking news really affect the property prices
http://e.jang.com.pk/07-01-2016/lahore/pic.asp?picname=1631.gif
Ahmed Thanks for sharing. If Dar needs money for the government then put a plain tax of 100 rupees on every plot and every house. They will collect more money than doing such stupid acrobatics. In actual, Dar has just lost his mind. His idea will get flop very soon as buying and selling will become very very slow and hard.
No manners in Jang newspaper also, Tax chour ... Tax chour ... Ki raat lagae hue hai. Non sense. This tax chour is paying more tax than filer in every tax category because he is non filer. And why he is non filer still because he does not trust on these stupid politicians.
Yes money will go to stocks but then will it become legiminate? There will be more satta in stocks then real estate.
Dar must leave or he will keep screwing every sector.
So this is black Friday for the property market.
What are the options to challenge this in court? It just does not make sense to apply from 2006. Had that been applied at that time, many would have decided other than investing in property.
The non-filers are the expats as well. So how would this law apply to them when they pay tax on their income in the country where they earn like USA, Europe etc and invest their savings.
Naveed business men are governing our country and they will always think first for their own interest they might have earn good enough and now they are going to do some adjustments and will try to earn some reputation but dont you think property prices have gone too high for the real buyer who want to have his own home now they r shift some burden from general sale tax to other direction which was an atrocity on poor pakistanis
MKhan i don’t think people who have earn white money from USA, Europe will be affected. Wasa en ka koi pata b nahi -
Now it’s better for overseas Pakistanis to invest or buy property in country where they live, no need to send money to Pakistan to these thieves, I am thinking to invest in UAE, there are plenty of opportunities and if they are charging any tax, at least they provide all facilities in building/apartment/villa, no load shedding, no water shortage and a world class living and cities. So, stop investing specially in real estate of Pakistan and think on alternatives.
Ye choor k bachay begherat log tax lagatay kis baat ka hai????
na bijli
na pani
na mehngai pe control
na health
na schools
Logon ki halal ki kamai k peechay parray or apni haram ki bahir invest kiye hoye hain, haram khor kahen k...
Don’t vote for them next time coz jis na vote dia tha ab enjoy karain. I think I shud sell my plots and invest in uae as well if this new tax implemented. Already suffering being non filer overseas Pakistani
Uae property rental return is awesome plus no currency risk as its pegged to US dollars
Plus no frauds or any tax issues as market is well regulated. That’s why ishaq dar own investments in use. Seems this new tax is to encourage capital outflow as remember mushiness use government investment advisor and you never know he may still be doing his job as an economic hit man
Friends Nothing will happen due to this new Law however the rumors which floated on social media from some of our emotional real estate dealers may effect the property prices otherwise there is no reason of decrease in prices or any slump.
Regards,
KJ
I still feel uneasy investing in the Gulf States where we basically have no rights as ‘kharjis’. One fine morning political bombshell can go off (as in Bahrain) and property might be in jeopardy, or even worse, just gone from our hands without legal recourse. Going to courts there is useless if the other party is a local guy or the government. In Pakistan, despite all the corruption and qabza groups, and now these taxes, I still don’t lose sleep at night. Yehi ho ga na k margins kum ho jayenge. So what. I can live with that
Can someone please explain the New Tax law, for us to understand what all changes have been made…
I would like to clarify the misconceptions about the changes in property taxation.
The withholding taxes collected on property transactions will be on the basis of the registered value and not on the basis of fair market value which according to the recent change in law will be determined by the valuers to be notified by the State Bank.
Property registration and recording transactions thereof is the domain of the provincial governments and the federal government has no role in that.
Individual cases shall be referred to the valuers for determining the fair market value not for collection of transaction taxes referred in the above post but for determining the sources of investment made by the purchaser. When a person makes an investment he is required under the Income Tax law to prove that he has available with him sufficient declared funds on which he has paid due tax at the time of earning the income from which the surplus is being invested. If the purchaser can not explain the investment from known (taxed) sources the amount invested by him is treated as his income and subjected to tax and penalty. When a person understated the quantum of his investment he is required to explain the sources of the declared investment and not the actual amount. This then becomes an easy way of gising un taxed money.
The proposal for determination of fair market value through independent valuers is meant to plug this loophole that promotes tax evasion and provides a mechanism for parking un taxed money.
It also needs to be understood that it is in the interest of the seller to declare the actual price received because he will have white money available with him that he can use subsequently to explain any investment or expenditure made by him. Receiving underhand amounts make the seller fall in the vicious circle of trying to understate his investments and expenditure too.
This proposal was put forward by FBR and met stiff opposition from the politicians and business people because it has the potential to improve our tax system and contribute towards increase in our revenues.
The expatriates have no problem regarding explaining the sources of their investment provided they have remitted the amount through normal banking channels and the change in law will not reduce their appetite for investment in real estate.
The detailed procedure and mechanism of how the system will work is still to be issued.
I have tried to explain in simple words a complicated subject and I am available if any friend needs any further clarification.
I copy this message from one of our whatsapp group.
AOA to all brothers,
I think no more juice in property business.File game is risky so better to move your investment.
Overseas logon ki hard earn money ko ya thug log(jo apni black money Uk ior UAE ma invest kartha hain)black money kha rha hain.
Wo log jino na inn thug logon ko vote dia tha ab sher banian.loan lar kar apni property UK ma banana wala white money walon sa tax la kar IMF ko dana ka chkar ma hain.
Overseas ka tukron pa palna wali shireef family loota hua pasa wapas la kar apna mulk ma invest kar dain to IMF sa loan hi na lana para.
90% overseas are property investors in Pakistan.agar inn ki black money ha to phir white money UK ior UAE ma hi ha jo inn logon na last 20 sal ma invest ki houi ha.
Regards
It seems they have discussed this new law with the property crocodiles and big fishes thats why they have written 5 year valuation time for filer and 10 year for non filer cuz all these property tycoon are filer and have bought most of agriculture properties for residential purpose and mostly was bought long time ago so they have got a clean chit but medium sized and small investor will trap in this tax net
Nadeem Bhai, in the first post , you are saying that overseas will have no issue because the money is remitted through banking channels and its white. So if it is white money you can buy property with it and declare the actual value. Then in the next post you are saying there will be no juice as overseas money will be declared black?