Lahore: The Punjab government on Wednesday (June 15) increased the one-time tax on the construction of luxury houses of two kanals and above, news sources reported. The stamp duty on urban immovable properties has been increased from 1% to 2% in the new tax document proposed for the fiscal year 2022-23 (FY-23).
According to reports, the government has raised taxes on all luxury homes effective from July 1. However, the luxury houses which submitted the completion till June 30, will be taxed under the old rates. Under the proposed tax, any house with a covered area of more than 6,000 square feet or above will be charged by the following formula:
For luxury houses measuring two kanals or more with a covered area of over 6,000 sq ft, the tax will be PKR 300,000 per kanal to a maximum of 2.5 million, up from the previous rate of PKR 200,000 per kanal to a maximum of PKR 2 million for luxury houses.
The new tax rate for eight kanals and above with a covered area of more than 12,000 sq ft is PKR 400,000 per kanal to a maximum of PKR 4 million, up from PKR 300,000 per kanal to a maximum of PKR 3.6 million.
The government has also retained the exemptions offered in case the tax is paid using e-payment gateways. A 5% reduction will be permitted on tax payments made using the e-payment system. Similarly, taxpayers will be allowed to pay on a monthly, quarterly, and annual basis with certain discounts as follows:
- In the first quarter, the amount of yearly tax will be reduced by 5%
- In the case of payment in the second quarter, the amount of annual tax will be reduced by 1%
- In the case of payment of tax in the third and fourth quarters, the amount of annual tax will be charged with a 1% surcharge each month on the gross payable tax.