Lahore: From 1st July, 2018, property taxes will be calculated and collected according to the fair market price declared by the buyer and seller in the sale deed, reported a news source. The federal government had proposed these changes in the Finance Bill for the next fiscal year, which starts from 1st July.
According to these proposals shared by the Finance Minister Miftah Ismail in his budget speech delivered on 27th April, tax on immovable assets will be collected on the fair market price agreed upon between the buyer and seller and not according to the DC rate or the valuation tables shared earlier by the Federal Board of Revenue (FBR). To bring down the possibilities of under-declaration of real estate assets to avoid paying taxes, the FBR can buy these units within six months of registration of the sales deed.
In terms of applicable taxes on property transaction, it was announced that one percent of the declared value of the property will be collected from the seller as adjustable Advance Tax. Furthermore, the government had also proposed baring non-filers from buying property having a price tag of over PKR 4 million.
