Islamabad: The federal government is looking to impose a luxury tax on large homes and farmhouses located in the federal capital — a news source reported. The taxes are expected to range between PKR 100,000 and PKR 200,000 for houses, and between PKR 25 to PKR 80 per square feet for farmhouses.
According to the details available, the tax will be recovered by the Excise & Taxation department. Furthermore, it has been decided that homes owned by widows will be exempted from the proposed luxury tax.
The final decision on the matter is yet to be taken. If approved by the federal government, the tax will be made part of the national budget for FY2020-21.
Homes that are between 2 to 4 kanals in size will have a luxury tax worth PKR 100,000. Any home exceeding this size limit will be charged a luxury tax of PKR 200,000.
In case of farmhouses, properties up to 4 kanals in size will be exempted from the luxury tax. For farmhouses between 5,000 sq ft and 7,000 sq ft in size, tax will be imposed at a rate of PKR 25 per square foot of covered area. For farmhouses covering an area between 7,001 and 10,000 sq ft, the tax will be imposed at a rate of PKR 40 per square foot. For a covered area larger than that, the tax will be imposed at a rate of PKR 50 per square foot.
For the second category of farmhouses, properties spanning an area between 5,000 sq ft and 7,000 sq ft will be imposed with a tax rate of PKR 60 per square foot of covered area. For areas spanning between 7,001 and 10,000 sq ft, the tax will be imposed at a rate of PKR 70 per square foot. For a covered area larger than that, the tax will be imposed at a rate of PKR 80 per square foot.
