Karachi: During a virtual meeting with World Bank (WB) Country Director Mr Najy Binhussin, Sindh Chief Minister (CM) Murad Ali Shah said that the provincial government wants to align its property rates in Karachi, Hyderabad and Sukkur as per the Federal Board of Revenue (FBR), according to news sources.
During 2019, the FBR issued valuation tables for Capital Gains Tax (CGT) collection for 21 Pakistani cities, including these three cities. Customarily, the federal and provincial taxes are paid on property-related transactions. The federal taxes include capital gains tax (CGT) and Advance Tax. On the other hand, provincial taxes include Capital Value Tax, registration fee and stamp duty. These taxes are charged on the minimum property rate that has been set by the FBR. However, as these tables were revised, valuation rates for federal and Sindh governments are significantly different.
Moreover, CM Shah said that Sindh has drafted its Fiscal Responsibility Legislation, and added that a resettlement and rehabilitation framework will be developed to address encroachments in the province. The meeting also reviewed the progress of World Bank projects launched in Karachi.