Recently i read few members mentioning wealth tax. The idea is new to me and i would like to know what are the chances it would be implemented in pakistan and if does what would it entail? Would it affect realestate? And if does would it be to the extent that one should seek alternative investment strategies? Would it be on residential properties or commercial? Any one please?
It is an asset-based tax that was imposed in pakistan for more than 30 years until musharraf abolished it in 2002 (in order to benefit army people who get lands and plots on retirement).
There are bright chances that the nawaz sharif govt will introduce it again - maybe at 2.5%. This will apply to plots but may not apply to houses because the owner is either living in the house or paying income tax on rental income.
We have to wait for the budget, but my guess is it will be imposed.
Exactly PK1, wealth tax may be imposed at about 2.5 % to 2.85% heard a rumor about 2.85 % even.
There is no wealth tax in ishaq dar’s budget announcement. In fact taxes on other forms of investment like cars may attract more savings to real estate.
They have removed tax exemption for luxury cars but 1200 cc hybrid cars are exempted form import duty. On 1200-1800 cc cars the duty is to be reduced to half. Plus rs20,000 tax imposed on the purchase of 1000 cc cars.
This is the news real estate investors are waiting for ;) This will flourish the property sector resulting in upward threshold Let's see what will happen next
Pk1 i want to amend you a bit "on 1200-1800 cc cars the duty is to be reduced to half" The actual news is the duty is 50 %less, the earlier duty was 100 plus %.
Where we are today on wealth tax?