One kanal house purchaser to pay Rs0.8m tax
LAHORE - The government is fleecing the public by imposing several taxes including Transfer Fee, Capital Value Tax (CVT), Provincial Stamp Duty, Cantonment Board Tax and Transfer of Immovable Property Tax (TIP) on sale and purchase of properties.
If the govt remains stick to its policies of imposing more taxes on real estate than no one can stop the capital to fly once again to Dubai because of their liberal tax policy.
A purchaser of one kanal house has to pay Rs 7,00,000 to Rs 8,00,000 in the head of all these taxes. In case of one kanal plot in a developed society like DHA, the purchaser has to pay around Rs 4,00,000 in the form of above mentioned taxes and if it is of 2 kanal plot the amount goes to Rs 7,00,000.
This was stated by Maj (r) Waseem Anwar Ch, President of DHA Estate Agents Association, in a letter written to Editor-in-Chief The Nation Majid Nizami on Tuesday.
Maj (r) Waseem lamented when CVT was levied, it was declared the province would not levy any tax, but last year Punjab CM Shahbaz Sharif levied the Provincial Stamp Duty and added that Punjab is the only province, which has levied stamp duty as no other province has levied any stamp duty.
He demanded the government to streamline the tax policy.
He said that Shaukat Tarin, despite his repeated pledges, announced no tax on stock exchange, agriculture and textile but doubled the CVI tax on real estate.
Further he announced to convert CVI into Capital Gain Tax, which will once again open a pandora box, giving free hand to Revenue Department to black mail a seller while assessing capital gain, Waseem Anwar stated.
He maintained: “Real estate is not just the matter of selling or purchasing of plots. When a buyer starts constructing house, he helps 28 other industries including cement, brick, steel, ceramic, cable and glass industries etc.
Besides skilled and unskilled manpower gets job opportunity. In 1 Kanal house, around 15 Lakhs is paid to skilled or unskilled workers in shape of wages. So, housing sector really helps other industries. Thus there is a need that govt should encourage this sector. Govt should not try to levy more taxes otherwise flight of capital will be in offing immediately after passing of finance bill.”
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Regional/Lahore/24-Jun-2009/One-kanal-house-purchaser-to-pay-Rs08m-tax --------------------------------------------------------------------------------
Hamid, Toronto replied on Wednesday, June 24, 2009 08:11 AM PST
This news can be viewed on lahorerealestate website as well.
http://www.lahorerealestate.com/pakrealestatetimes/showthread.php?tid=5825 --------------------------------------------------------------------------------
Observer replied on Wednesday, June 24, 2009 10:16 AM PST
Dear Friends,
Actualy when the country goes to IMF then it will be very difficult for any Govt. to do something good for the people. There are many stakeholders of IMF who are sitting in Govt. They always try to frame the policy that the country should not be able to come out of the circle of IMF. If u see this budget it is a simple example.
Pakistan was very much dependent on the remmitance which use to be sent by overseas Pakistani to their families. It is around 7 Billion USD. Now these stakeholder wanted to hit that.
First they are trying that no bank account should be open without NTN. As we know that most of the pakistani living abroad send the remmitence to their wife;s or old parents, who will not be able to go to diffrent Govt, offices to get NTN. It means they will not open accounts. So the people will start sending payments to their families via other means and therefore this remmitence to pakistan will automaticaly decrease. So less foreign exchange more dependance on IMF. Wonderfull hit on Pakistan economy.!
It is long term planning against Pakistan
Similary the best investment for these people were in property. Normaly when they come on vacations they buy some property in the country. But the so called stakeholders also wanted to hit that area that no more investment in this area, so people will start buying foreign currency or will invest in gold. So more devaluation of rupee.
So we have to facethe agenda of foreign stakeholders sitting in Govt.
