The property sector is gradually moving out of the standstill caused by the new mechanism to calculate property taxes. Here at Zameen.com, we have also seen a rise in property demand but this rise has not brought along a noticeable rise in property prices. While it may remain debatable whether or not the tax amnesty scheme has a role to play in it, the property investment volume, in fact, started to increase soon after the announcement of this scheme.
According to the stats shared by the Federal Board of Revenue (FBR), PKR 6.8 billion were invested in the property sector between December 7, 2016 and January 13, 2017. Per the FBR, property transaction volume during the mentioned time period increased by 90%, which the board considers a great development. The board has also revealed that it collected an additional amount of PKR 200 million under the Section 236W of Income Tax Ordinance in these 38 days of announcing the tax amnesty scheme.
While we get to read about the stats and sums the tax authorities have collected under the new tax regime, we still await details on the public response the tax amnesty scheme generated because, apparently, many people waiting to get the required details to avail it.
Clearly, the revenue collected under the amnesty scheme can increase many, many times if the public has access to a complete set of information about how to avail this scheme. In fact, many people associated with the real estate industry ask that the FBR help them in understanding the mechanism so that they can guide their clients about availing this scheme.
If any reader of this blog has turned their money white through the tax amnesty scheme, I would appreciate if they share their experience with other readers in the comments section below.
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Hi
can you guide me how to calculate this tax? I want to buy a plot in Lahore.
Thanks
I have plots in bahria if you want call me 03214127226
ASSLAM O ALLKUM BHAI
bhai amnesty tax is applicable on the difference between FBR value and DC value for example phase 9 prism FBR Value 45lac DC value 30 lac difference 15lac now you have to pay 3% on difference which will be 45000 for more info please contavt me
mian irfan 03214368157
mian.fani0157@gmail.com
A good and leading training by the government to the nation to steel money from the poor people from their tax pay and repay small percentage to the government to make it white and legitimate. Then bring / invest this money to any industry where a huge profit is earned and let the poor people suffer and just worry about their daily bread. الله سي خوف كرو. Allah brings a total disaster to the nation where no justice is exercised. Every government has the same story of steeling money and legitimate it later-on.
The machinery deliberately played havoc with this sector. They are just trying to make fool out of people..They have totally ruined this sector with their idiotic policies and without having a thorough research to introduce these reforms. I agree that market needed some regulation in tax collection but that could be done with fair,equitable,justifiable and well though out policy reforms without damaging the sector.Now let me explain how they are fooling the people around. Let’s suppose that the number of transactions in month time before the implementation of tax reforms(taxation deforms actually) were 100. After the implementation, lets suppose that the transaction volume drops to 1 from 100.For the particular period mentioned for dec-jan for 1 month approx, the transactions jumped from 1 to 10 registering an increase of 90 percent.Now the game they are is playing is, instead of comparing the transaction with the figure of 100, they are just comparing it with the figure of 1. Actually there is a huge drop in the transactions because of their ill-conceived policies which they don’t want to accept. Their revenue from real-estate has plummeted colossally.
@ Saadi you hit the Bulls eye.
Dear Saadi,
You are absolutely correct. No significant movement seen even after the new amnesty Law. Probably FBR issued figures to please their Pay masters just to assure them that new Law from their corrupt mind is working.
Very well said. Incapable people unfortunately holding people’s fate. They are living on loans and describing it as a thriving economy.
Please any one can guide me if I am not earning in country but sending money from outside as property installment. do I need to pay any taxes on such property which is still on installment
This was nice explanation to know the insight, Thanks to share.
Is there any news for NFC2 as since long it has become idle. It will be great and highly appreciated if someone is able to give the real picture.
the amnesty scheme has totally failed…no one knows how to avail it while big investors know its a trap…no one earning black money will come under tax net or avail this scheme….while property prices are so high specially in khi that transaction volume more or less is the same which was before amnesty and which is very low…. until or unless price correction takes place the property transaction volume will not pick up
Rizwan Sir..Amnesty is fail as usual in which limited ruling class declared their restricted assets which they wanted to show but had no other choice except to avail the amnesty.Secondly market is mature enough now and the investors who are involved in realty business are the strong hold guys unlike previous era where many newbies took loans to play in short term and consequentially, upon the bursting of bubble, investors started to pull out their money to recover what they can.Now majority of investors are having deep pockets and they are waiting for the conditions to improve and are not ready to give away their properties at lower rates.Lastly i would say that people would get immune to this new system with the passage of time and things would move towards normalcy in a reasonable time frame because the overall economic conditions are not favoring for any other business except real estate.
@saadi_aquarius @rizwan
Salam
can you have idea how to calculate this tax?
Thanks
I agree with Saadi! Infact, the stats presented by the FBR are not real and as usual thay just try to show their failed policies as succesful. They just try to to make fool people by their fake numbers game. The main cause of the collapsing of real estate sector is not black money and its amnesty, the main issue is the unjustified and unrealistic hike in the taxes loke advance tax and CGT.
@rizwan @saadi_aquarius
Salam
can you have idea how to calculate this tax?
Thanks
What is the latest status for properties tax – it is implemented – or still pendinding in discusion – what is gain tax – And if all the taxes are implemented : what are the taxes , and how much total percentage of taxes one needs to pay : for example if someone buys 20 lakhs property , how much total tax will be on it and what are the taxes – and on who tax is , the one who is purchasing or on one whi is selling or on both – and I heard also if someone has purchased any property plot or a house or a plaza or any other type properties : he is not allowed to sell it again until 3 years . Please someone with complete knowledge : gives me update . Thanks