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Punjab Real Estate Budget 2016-2017 Highlights

+1 vote
asked Jun 14, 2016 in General advice by ali (880 points)
edited Jun 14, 2016 by ali

Positives:

Funds allocated for 

  • Liver & Kidney Hospital - will benefit DHa Phase 7
  • Canal Road Widening from Thokar Niaz Baig - will benefit all Canal facing sociaties like Bahria, Izmir, DHA EME, Canal Garden to name a few. 
  • Water Purification system on BRB Canal with the help of Turkey- will benefit DHa Phase 7
  • Ring Road Southern Loop - All neighboring sociaties including DHA PRISM, DHA Rahbar, Lake CIty to name a few. 
  • BRB Canal Road to Burki Road extention - Will benefit DHA 6, DHA7, IVY Green and Paragon
  • Raiwind to Sue-e-asal Road Widening - will benefit Bahria EMC? Not sure

Negatives:

  • Possession plot  (After 2 years of possession) taxed 9% at the value of the tax of a constructed property in the same region. This means If a 10 marla constructed house has a tax of 1 lac...the neighbouring empty plot will have 9 thousand tax per year.
  • 3% stamp duty on DC rate in case of transfers in cooperative societies
  • CVT Change/Increase - Instead of charging 100 rupee per square foot. proposal to charge 2% of total value
  • Proposal to give FBR authority to access the market value of plot at time of transfer 


"The tax on vacant plots will be levied after two years of taking possession by the owner. Moreover, the provision relating to exemption of building and land used exclusively for educational purposes should be clarified by adding an explanation."
This means inevstors will be more interested in file and under development plots.


"In order to safeguard public revenues, it is proposed that Article 63A of Schedule-I of the Stamp Act 1899, which is meant for transfer of a right or interest relating to an immovable property, may be inserted in Section 27A of the Act so that the assessment of the land may be made according to the valuation table.

Currently, stamp duty at the rate of 3% is being charged on the value of immovable property in case of transfer of a right or interest in the housing sector. However, the valuation tables notified by the District Collector under Section 27A are not applicable to such transfers."

Which means more tax on actual value of the plot?

1 Answer

0 votes
answered Jun 16, 2016 by hamza (1,340 points)
Yes, now FBR is asked to calculate the real value of the land which means you have to pay more tax on actual value and not on DC value any more.

Well, this will help corrupt mafia in FBR and govt to make more money and the money will not land in govt pocket.

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