Islamabad: Amid concerns that property investors may choose to invest in other countries because of the recent changes in property valuation laws and taxes, Naveed Zafar Ashfaq Jaffery & Co., an accountancy firm, has recommended a tax amnesty scheme, according to a news source.
Reportedly, three solutions have been proposed:
1) A one-time tax amnesty scheme is introduced in which property is declared at actual cost and taxes are paid at 2-3% of the difference between the value suggested by the valuators of the State Bank of Pakistan and the actual cost.
2) Fixed tax rate is paid at the rate of 3% on the sale of property and the tax percentage is applied on the difference between collector value and market value.
3) Adjust property values in the valuation table according to the current market rates or do so gradually in the case of big differences.
The proposed solutions were made in light of the inevitable disagreements, resulting in protests, says a news source.
