Lahore: The former chairman of District Council Narowal has challenged the legislation of levying income tax on ‘deemed rental income’ of properties in the Lahore High Court (LHC), according to news published in the national dailies on November 16.
As per the details, the new law mandated that every property which is not used by the owners will be considered by the Federal Board of Revenue (FBR) as bearing rent equivalent to 5% of the total market value of the property. This means that every property owner will have to pay a tax equivalent to 1% of the market value of the property to the federal government.
The news source mentioned stated that the petitioner opined that the tax imposed under the newly inserted section 7E of the Income Tax Ordinance, 2001 has been levied as an income tax when it is clearly not an income tax. He went on to say that property tax is the only major source of revenue for local governments. He requested the LHC to declare it illegal and unconstitutional.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
