Islamabad: The federal government recently announced its decision to reduce the rate of Capital Gains Tax (CGT) on the transfer of property owned by public servants, including officers and staff — a news source reported.
Additionally, in case of transfer of property after three
years the CGT payable by the public servants will have a rebate of 75%. So, in
case of sale of property after 3 years, the public servants will have to pay
only 5% CGT, instead of the usual 20% of total gains.
Federal Board of Revenue (FBR) will introduce an amendment bill for the purpose. The bill will amend Section 9A of the Income Tax Ordinance 2001.
The draft of the proposed amendment will be presented before
a parliamentary committee. The amendment will only apply to the retired and
serving officers and employees of the federal and provincial governments — while
a 20% CGT will remain applicable for the general public.
