Govt asked to retract taxes on real estate transactions.
Islamabad: Real estate stakeholders have requested the government to retract the taxes introduced on property transactions through Budget 2019-20; thereby offsetting some of the impact of the ongoing coronavirus pandemic on the country’s real estate sector, a news source reported.
Punjab property value assessment begins; taxes expected to increase by 30%
According to details, negotiations have been underway between real estate stakeholders, the federal government, and the Federal Board of Revenue (FBR) on the matter. These individuals have been pushing for a reduction in the duration during which the Capital Gains Tax (CGT) is applicable on the transfer of properties.
Currently, for a plot sold within eight years of its purchase, the CGT can be as high as 20%. However, realtors have suggested that the duration be reduced to three years, as was the previous practice.
The government had introduced these measures in a bid to increase its revenue by as much as PKR 44 billion. However, the realtors have contended that in view of the economic slowdown caused by the coronavirus situation, a certain amount of relief should be provided to the real estate industry.