The Punjab Assembly announced the budget for the fiscal year 2013-14 and has levied some heavy taxes on property. This tax has two dimensions to it i.e. not only tax is imposed on property ownership but property transactions also.
Owners of houses ranging between, two to four Kanal will be paying the annual property tax of Rs 500,000 while owners with a residence spread between four to eight Kanal will be paying Rs 100,000 annual property tax. Houses spread over more than eight Kanal will pay Rs 1,500,000. There will be no tax levied on a widow having a house less than 4 Kanal.
This budget for the first time has introduced, imposing a tax on property transaction. As per the tax postulates the seller has to pay 5% of the total amount as tax if the sale takes place in the first year the purchase of the property. In the second year the tax to be paid is 4 % and so forth. There will be no tax on the sale of the property after five years of its actual purchase. Last year this suggestion was passed in the assembly but was not approved.
