- August 17, 2023
- Posted by: Muhammad Shehzad
- Category: Uncategorized
The Punjab Land Records Authority (PLRA) has directed revenue officers across the province to adhere to the recently revised property tax rates applicable to buyers and sellers of immovable properties for the ongoing fiscal year, according to news published on August 10.
Finance Act 2023
The Finance Act of 2023 has undergone amendments, leading to adjustments in income tax rates. It relevant provisions outlines in the Income Tax Ordinance of 2001.
Tax Rate Filers and Non-filers
Under the previous framework, individuals are classified as tax filers. They were subject to a 2% tax rate for property sales and purchases, while non-filers faced a higher rate of 4%. However, the updated tax structure for tax filers now stands at 3%, whereas non-filers are subject to an increased rate of 6% for any property sales or transfers.
New Rates Implementation
Formerly, tax filers were obligated to pay a 3% tax rate, whereas non-filers encountered a higher 7% tax rate when involved in property transactions. With the newly implemented revised rates now in effect, the tax rate for tax filers remains at 3%. However, non-filers are now subject to a significantly higher tax rate of 10.5 % when engaging in property purchases.
Equitable Taxation System
The Board of Revenue officials (whose names were not disclose) highlights that this implementation of updated property tax rates anticipates to result in higher revenue generation and the establishment of a more equitable taxation system within the real estate sector.
Property tax rates are a crucial step toward improved revenue generation and financial stability for revised proposal of Punjab’s strategy. The state is poised to achieve its dual goals. For improving its financial health and promoting overall growth across its urban landscape.