It appears that the process of imposing taxes on the property sector is not over yet. The Federal Board of Revenue (FBR) has imposed a 5% tax on the approval of map for commercial and residential projects. Initially, the tax will be applicable on the housing societies that fall in the jurisdiction of Lahore Development Authority (LDA).<\/p>\n
Earlier in July, the Excise and Taxation Department announced that owners of plots that have been vacant for two or more years would be required to pay a tax of 10% of the property value. Since this tax on empty plots would be collected by the provincial government, it will be calculated per the Deputy Collector\u2019s rate. So you can\u2019t keep a plot vacant without paying a 10% tax on it and any construction on it is now more expensive due to the 5% FBR tax, which would be calculated per the FBR valuation tables.<\/p>\n
The tax on layout plan approval was announced on September 23, 2016 and the FBR has also intimated LDA in writing to implement this tax. The folks looking to submit a layout plan of their house or plaza in LDA office for approval would first need to pay 5% tax to the FBR. Without the FBR receipt, LDA will not entertain any application. LDA has also directed the directorates concerned to implement FBR\u2019s new tax policy.<\/p>\n
For the layout plan of a 3-marla residential unit, FBR will charge PKR 20 per square feet. For 6-marla units, the rate is PKR 40 while for layout plans of residential units bigger than 6-marla, the rate is PKR 70. For commercial buildings, FBR has implemented a flat tax of PKR 210. Furthermore, it should be noted here that FBR has already imposed a 5% advance tax on real estate developers, and the developer can only apply for NOC for the respective housing society after they pay this tax.<\/p>\n
Without debating whether applying taxes on the real estate sector is right or wrong, I must say that the situation is getting a little disturbing for the stakeholders. These taxes certainly have their merits and demerits but one thing is certain; the changes are happening too quickly and it is all a bit too much to handle.<\/p>\n","protected":false},"excerpt":{"rendered":"
It appears that the process of imposing taxes on the property sector is not over yet. The Federal Board of Revenue (FBR) has imposed a 5% tax on the approval of map for commercial and residential projects. Initially, the tax will be applicable on the housing societies that fall in the jurisdiction of Lahore Development Authority (LDA). Earlier in July, the Excise and Taxation Department announced that owners of plots that have been vacant for two or more years would be required to pay a tax of 10% of the property value. Since this tax on empty plots would be collected by the provincial government, it will be calculated per the Deputy Collector\u2019s rate. So you can\u2019t keep a plot vacant without paying a 10% tax on it and any construction on it is now more expensive due to the 5% FBR tax, which would be calculated per the FBR valuation tables. The tax on layout plan approval was announced on September 23, 2016 and the FBR has also intimated LDA in writing to implement this tax. The folks looking to submit a layout plan of their house or plaza in LDA office for approval would first need to pay…<\/p>\n","protected":false},"author":18,"featured_media":23100,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11053],"tags":[3485],"persona":[],"class_list":{"0":"post-23099","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-laws-taxes","8":"tag-details-of-taxes-on-property-sector","9":"cat-11053-id"},"acf":[],"yoast_head":"\n