Karachi: The State Bank of Pakistan (SBP) says it supports the new tax system which is based on the real prices of property, states a news report.
According to details, the SBP’s Annual Report on the State of Economy 2015-16 shows that despite increasing activity and investments in the real estate sector, the provincial income generated from taxes is very low.
Reportedly, the bank has asked provincial governments to restructure property tax laws to discourage the practice of declaring lower property rates in documents. According to SBP’s statistics, in the total taxes collected from Punjab, the share of property tax has reduced from 18.7% in 2009 to an expected 7.1% in 2016-17. The same ratio in Sindh and Baluchistan has dropped from 3.9% and 3.8% to 3% and 1.9% during the same period respectively.
The Central Bank also welcomes the decision to increase property values for the imposition of Capital Gains Tax as it will discourage the speculative trends in the property market and increase tax revenue for provincial governments, as per a news source.
