How tax reforms will impact property values?
Please shed your thoughts?
I guess, it will boom again.
Huge. I think prices will become stagnant or even decrease at some places that one point where non filers won't be able to buy a property worth more than 4 millions.
Government is doing great closing every thing for tax evaders.
Very Negative.
Good initiative. A must for This country.
This is shameful for investors of real estate and everyone else who think even this friendly tax liability as unfair for them. We all owe to return back to our country and play a role if we are earning from real estate.
All over the world citizens pay 30% to 40% of the income as tax but we only like to criticise governments but are not ready if our country demands something from us. God bless Pakistan.
I think it would have a devastating effect on sale purchase, our people are not in habit of paying taxes, so the activities would really slow down. Investors with deep pockets will not reduce the prices as they can afford not to which will lead to a halt in trading. But it remain to be seen how our fbr handles the new rules, this will not be easy as govt depts. Are known for their inefficiency,
Don't worry guys. PM is the biggest culprit himself. Just investigate how many planes airblue had before 2013 and how many he has now. How much airblue passenger load increased since PMLN came to power. He is a chor himself. He is also hiding LNG agreement. I think he will go to jail whenever that agreement is disclosed and investigated.
Regarding RE proposal, first of all senate will not pass this proposal. Secondly, even if they enforce it will be challenged in supreme court and will be nullified. PMLN has only 45 days left,they simply don't have enough time to pass it through both NA & senate and then the legal test in supreme court.
Share the number of planes owned before 2013 please.
I don't think govt is keen to pass a bill through national assembly and senate. They are taking a short route of presidential ordinance which stays effective for 3 months.
Impact on prices will depend how the scheme is received. If successful, this may bring back huge sums of monies, that, in the absence of any real investment opportunity, will land into another price hike. Otherwise, it may end up pushing the sector into deeper hole.
Critics of government will always criticise just because of their political likes and dislikes ni matter if that’s at the cost of country. Can anyone explain here why shouldn’t we pay taxesandcreturn something back if we earn from property deal??
@Inamullah, it is not the question whether we SHOULD pay taxes or not. It is the matter of HABIT, people are not used to paying taxes, and it suites them too. Here is simple math that explains the gravity:
We are a country of 220 million people of which only 1.2 million people filed taxes last year which is less than 1% of population. Of these bravehearts who did file, half of them (0.5 million) filed 'nill' return, that is below taxable limit.
Now only 0.7 million people are carrying the load of 220 million. Don't forget that a larger proportion of this is the salaried class.
This is the level of responsibility of this nation that does not get tired lecturing on religious and moral values, chant patriotic slogans and vows to stand to protect brethren around the globe.
What a joke!
Inamullah sb,
what you are advocating, I fully support, in fact any average citizen will support that. You cannot run a state without citizen's contribution, no matter how rich the state itself it. Recent example is VAT imposition in GCC. However, it is a trust thing between state and its citizens. I had a first hand experience of happily paying upto 40% as income tax on the state assurance that I do not need to worry at all regarding the security, health, basic facilities, education, and importantly my right as that will be on state after I pay my contribution.
Here the problem is even Zakat Money is used for unofficial family visits for officials higher up in ministry of religious affairs. Thats just the tip of a mountain sort of example. I am all in to pay tax and file the returns. the problem is more revenue and more tax collection will lead to more corruption by the power brokers.
As a matter of fact, since getting out of bed in the morning to go back sleeping again, there is not a single consumable or usable that is not under the sales tax. Not a single item. Even after paying that state, in practical, our state shows 0 responsibility for its citizen.
Tax collection is blood-line to run a state/economy, however, with current level of corruption people take/perceive it as another act of loot with no transparency.
Sir, I think this discussion is for the ones who doubles their investments in a very short spam of time and keep doing that and pay absolutely nothing to the government.
To add also, our nation do not have the tendency to listen to others point of view and participate in a constructive discussion. Simply so many keyboard and mouse warriors here and on any other social media forum.
Example: Inamullah Khan post getting 2 replies and 7 dislikes..., ask the dislikers, would you care to explain the dislikes and express your concerns, not even a single one will be able to reply. Its just because hiding behind a screen and be negative is so easy these days!
and yes, this post for 1000 dislikes PLS!! Yes, all of those keyboard warriors!! Genuine contributors care 0 for what you like or dislike, except for constructive discussion!!
How this Tax Amnesty Scheme is good for country??? Property evaluation is good for country because it stops black money but how is fair to pay tax @ 2% to white all black money? A salary class pay more tax than these black money makers. How
Good or bad can only be evaluated once the scheme is in place and executed. On paper things are simply black and white (some people see them as good and some see them as negative). How this can be good, a few examples:
- Following the Swiss model, you can have the blackest money on this planet, put that into swiss account and its all ok. Tax to Swiss state + cash investment into the economy. Only exception is that if at govt. level, some govt. provide hard proof that the money sitting in swiss account is collected based on whatever black tactics and it was a loss to the state filing complaints in Swiss courts can possibly get it back (e.g. Case back in the day against Yousaf Raza Gillani and his disqualification). Otherwise black money across the globe lands in Swiss account and making Switzerland among wealthiest nations of the world, without much physical resources.
- UAE and alike are other examples. The equation is simpler to inject more foreign money/investment into the economy leading to employment, 2% tax and of-course the original amount (whatever the figure) now in the economy.
I am no economist with less technical details of it at micro/macro level, however, this is what I know as a mater of fact and successful models of tax amnesty at very basic level.
And yes Property Evaluation/Valuation and Regulation of Real estate is a must!
However, Amnesty scheme is not only specific to real estate investments but bringing money back and than do whatever business or investment one likes to
Talha,
fleet information of airblue is a public information available online. Feel free to search and you will find exact tail numbers along with their registration/induction date in to airblue. Now we now why Nawaz use to visit Russia so much.
Inam bhai,
Lagtaa hai $200K income limit cross kar dia hai apne. Tabhi 30 to 40% tax de rahee hain aap :)
Let me tell you why we don't want to pay.
Loaf of bread has 22% tax
Milk has tax
water has tax
baby diapers has tax
Medicines has import duty & other taxes
Flour to make roti has tax
Kid's private school has tax
Medical college student fee includes tax
Charge a cellphone and you will pay 42% tax
Pay electricity bill and you will pay 50% in GST & Others Taxes.
LPG 150 per KG after tax
Sui-Gas bills are almost 200% more than the cost
Buy petrol and you will pay almost 50% tax
Rent a house and you will pay tax as owner then charge more to tenants
Check the prices of cars which are needed by everyone these days.
Car registration cost more than freaking US of A
Oil changes cost double because oil prices are 200% compared to international levels
Spare parts has 400% import duty
Import anything to start and small business you will pay 50-100% duty taxes
Motorway tolls were 130 before 2013 and now 620 because of tax
Airline tickets has special taxes for all flights originating from Pakistan.
And what do we get in return. Water mixed with sewage, Naakke, Daakee and Faqeee
At end of the day we are paying way more than what you pay over there. Still let me ask why the F**** should we pay anything to these people beyond what we are paying. They are already sucking more than 50% of our incomes here.
I say if we shut down government today, Pakistan will become more productive.
So, pleas stop this lecture of yours. We are the ones buying (fake) milk 120 per liter while you over there get it for less than 50 per liter. Your country's government give you something. These Bast ards here don't give us anything.
Only us Pakistanis has such courage to stay silent and never say anything. Your beloved USA was founded only because British slapped high taxes and people of that country raised arms and kicked them out.
Sir Inam, if you are having good time over there and talking about civility and moral responsibility and following the laws, it is only because of those men and women who raised arms and fought against that evil government of that time.
Dear JDM sb,
"So, pleas stop this lecture of yours" --> In public forums, no one lectures others, its just every one has a right to express what they feel, of-course maintaining the mutual respect for each other!
The irony is that someone else expression is a lecture, while my expression is a divine right to be followed :) - ref to the post above
Imtiaz,
Please take some classes and improve your English grammar. It was used metaphorically as a figure of speech!!!
On another note I do recognize your love for this government of mega-thieves. Feel free to keep worshiping them. That's fine by me. I never asked anyone to follow me on anything i say. It is not my job.