2013-09-06 10:11:27 - The budget of 2013 and 2014 came heavily laden with property tax and luxury property tax. This has posed many changes in the realty scenario of Pakistan. The imposition of heavy taxes on all kinds of property has been met by a lot of opposition from the people. The following article is about the imposed taxes in detail.
The new budget of Punjab 2013-14 has hit the masses with the luxury tax rod! As per Zameen.com, the property transactions were already levied with massive taxes. Additional luxury taxes have been imposed on residential property and houses above 2 kanal in luxury areas are termed as ‘category-A’, according to Punjab urban immovable property tax act 1958. The owners of houses of two to four kanal will be paying Rs 5 Lac, houses of four-to eight kanal must pay Rs 1 million and houses more than eight kanal will be paying Rs 1.5 million.
Pakistan real estate is one of the most lucrative and profitable investment sectors of the country but with multiple taxes levied simultaneously, it is going to
be affected in multiple ways. The property tax has made it tough for the people to buy new property but this luxury has been met with a complete uproar from the masses and has been challenged by the Bar Association. The petitioner from the court said that the tax was extremely unfair and unjust when the government was already charging people to pay property tax. He further said that the government had already started to send people notices thus the court was urged to take action against the concerned departments to stop doing it.
The people were outraged at the mammoth sums asked to be paid on the already constructed residential areas. The masses exclaimed that buying property had been made difficult and the poor man’s budget forbade the very same category of the population from owning even a 5 or 3 marla house due to the immense property tax levied on them. The outrage was met by the excise department by no effect on the said luxury tax, although the flexibility was given to the people in the payment of taxes. The owners of the property could pay their luxury taxes in easy instalments.
For the payers of Rs 2 lac the instalments have been set as 1 lac after three months, for Rs 5 lac in a year and for Rs 8 lac in 18 months. The taxpayers have assured the excise department that they will pay the due taxes in the given time, regularly. The department has also agreed to facilitate the taxpayers by letting them pay in instalments and an amount set by themselves but no longer than the given time for their category.
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