{"id":21759,"date":"2016-07-12T18:02:12","date_gmt":"2016-07-12T13:02:12","guid":{"rendered":"http:\/\/www.zameen.com\/blog\/?p=21759"},"modified":"2017-12-11T12:30:13","modified_gmt":"2017-12-11T07:30:13","slug":"how-has-the-real-estate-market-responded-to-the-new-taxes","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/how-has-the-real-estate-market-responded-to-the-new-taxes.html","title":{"rendered":"How has the real estate market responded to the new taxes?"},"content":{"rendered":"

\"Property-Taxes--\"<\/p>\n

Many estate agents and real estate analysts anticipated a slower second half of the year, depending on how the Budget 2016-17 treated the real estate sector. However, I doubt whether anyone predicted that this much of the budget would be dedicated to imposing new regulations on this industry. What we find in the budget is a complete revamp of the whole property evaluation mechanism and a rise in the percentage of existing taxes.<\/p>\n

The Finance Bill 2016 has unearthed many new complications in property tax; something that needs calculations specific to individual housing societies and that too at a different rate for cities falling in Category A, B and C. It appears to me that the real estate industry has been provided with a well thought out plan. This feeling is based on the fact that, not only does the Federal Board of Revenue (FBR) appear to be prepared to release the related documents soon, but the State Bank of Pakistan (SBP), too, is ready to carry out the necessary tasks.<\/p>\n

On July 11, 2016, SBP released a list of approved evaluators for different cities categorized as per the stature of their respective real estate markets. You can view the related details and the list of SBP approved evaluators by clicking here<\/u><\/a>. The way related details are shared, it is beyond any doubt that the property tax amendments introduced just recently is the work of brainiacs, who closely monitored the real estate market in order to mint money out of it. Sadly and obviously, they paid little thought to repercussions of such sudden and strong amendments on a dozen sectors that link directly with it.<\/p>\n

The real estate stakeholders and dealers have massive concerns over the property tax amendments as they are already seeing its effects in the form of little \u00a0real estate transaction on record in the last two weeks. The slow month of Ramadan followed by the restrictions imposed by the Budget 2016-17 and Finance Bill 2016 have further reduced activity, leaving many folks wondering if there is a plan in place to deal with the number of industries that will suffer from this significant blow to the real estate sector.<\/p>\n

Many known dealers\u2019 associations throughout the country are preparing to stage protests against the Finance Bill 2016. In fact, many such protests are currently being shared on social media. As you read these lines, certain theories are also being circulated among the concerned parties. One such theory is a belief that as the percentages of new taxes is much higher, negotiations might bring them down to an acceptable level and things will eventually settle down to some extent. Yet, these folks agree that the market will nonetheless never be the same in terms of real estate transaction volume.<\/p>\n

Rumour also has it that many known private and semi-private real estate developers are already negotiating with the FBR to set a reasonable Deputy Commissioner (DC) rate for their projects. Some of these developers have already shared the new DC rate through their registered dealers. These lists are also being shared through WhatsApp and other similar mediums; people are relieved to think that if the new DC rate for prime developments could be not-so-dreadful, it might be even more reasonable for smaller and less posh housing projects.<\/p>\n

Despite the ongoing debate between the estate agents and real estate investors, there exists a stark ambiguity about who is going to pay how much in terms of which taxes. The way information is being released on regular basis, I am hopeful that many of these ambiguities will soon be cleared. I also expect that these amendments after negotiations will not be as harsh for the real estate market as they appear right now.<\/p>\n

Whatever happens, rest assured that Zameen Blog will keep you posted. If you have a say on this, use the comment box below.<\/p>\n","protected":false},"excerpt":{"rendered":"

Many estate agents and real estate analysts anticipated a slower second half of the year, depending on how the Budget 2016-17 treated the real estate sector. However, I doubt whether anyone predicted that this much of the budget would be dedicated to imposing new regulations on this industry. What we find in the budget is a complete revamp of the whole property evaluation mechanism and a rise in the percentage of existing taxes. The Finance Bill 2016 has unearthed many new complications in property tax; something that needs calculations specific to individual housing societies and that too at a different rate for cities falling in Category A, B and C. It appears to me that the real estate industry has been provided with a well thought out plan. This feeling is based on the fact that, not only does the Federal Board of Revenue (FBR) appear to be prepared to release the related documents soon, but the State Bank of Pakistan (SBP), too, is ready to carry out the necessary tasks. On July 11, 2016, SBP released a list of approved evaluators for different cities categorized as per the stature of their respective real estate markets. You can view the…<\/p>\n","protected":false},"author":18,"featured_media":21763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[3282,3285,3284,3283],"persona":[],"class_list":{"0":"post-21759","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"tag-details-on-real-estate-taxes","8":"tag-new-dc-rate","9":"tag-new-property-evaluation-rate-for-dha-plots","10":"tag-property-tax-effects-on-the-market"},"acf":[],"yoast_head":"\nHow has the real estate market responded to the new taxes? - Zameen News<\/title>\n<meta name=\"description\" content=\"Many estate agents and real estate analysts anticipated a slower second half of the year, depending on how the Budget 2016-17 treated the real estate\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/news\/how-has-the-real-estate-market-responded-to-the-new-taxes.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How has the real estate market responded to the new taxes? 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