Reforms announced in property tax system

LAHORE:The Punjab Excise and Taxation Department has announced reforms in the property tax system following cabinet approval.

Director General Excise and Taxation Umar Sher Chattha stated the reforms aimed at ensuring transparency and uniformity. He said key measures include property tax assessments based on DC table values and exemptions for residential properties worth up to Rs 5 million.

Existing taxpayers face no additional liability this fiscal year, while new taxpayers will pay only 25 percent of their total tax. The self-assessment system will enable citizens to calculate their taxes conveniently. Revenue collected will be used to enhance services in the respective areas.

Exemption to non-filers regarding property purchase lauded

Recent step taken by the government on purchase of property will help spur growth in housing market. Association of Builders and Developers of Pakistan (ABAD) hailed decision of granting exemption to non-filers on the purchase of Rs 10 million property. The decision of FBR for exemption of non-filers on purchase of Rs 10 million property recommended by the National Assembly's Standing Committee on Finance has been a step in the right direction. The construction and housing sector are an important pillar of the economy, said chairman ABAD SM Nabel and President National Economy Forum Malik Umer Suhail on Friday. They maintained that 72 industries are allied with real estate sector. Cement, steel, titles, glass and other industries are going through 40 percent of the productive processes and triggers across the board growth following government's decision. They observed that there is a capacity for 12 million houses to be built in the country. Each citizen has the constitutional right to have his own roof. Owing to the unjustified tax system, investment has constantly been transferring to Dubai, Turkey and other countries.

Federal Excise Duty (FED) elimination, first property purchase tax free, ease for non-filers could prevent investment of $ 12 billion annually that is being transferred abroad. They said the task force formed by the Prime Minister to end the problems faced by the real estate sector would be helpful to increase strong economic recovery and employment opportunities.