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Thursday April 25, 2024

Taxes on purchase, sale of property increased

By our correspondents
June 14, 2017

Punjab budget approved

Stamp duty hiked from 2pc to 5pc; users of over
Rs 1,500/month Internet to pay 19.5pc tax

LAHORE: Punjab Assembly passed the provincial budget 2017-2018 through a majority vote while open discussion over the budget in the assembly will commence from Wednesday (today).

During the session drafts for two bills vis-à-vis Destitute Children and Education Standard Development Authority were presented by Law Minister Rana Sanaullah in the house which were later referred to the relevant standing committees.

The session started over an hour and 20 minutes late under the acting speaker Sardar Shair Ali Gorchani. After the finance bill being passed the taxes, duties and fees related to Board of revenue were merged into Stamp Duty which will be issued through E-Stamping System. In addition to these other taxes and fees such as Capital Value Tax, Registration Fee too were added to the Stamp Act. In urban areas this tax shall be five percent of the value of land, while that in the rural three percent will be received. The same would apply to any property gifted as well. However, in case the property is gifted to spouse, parents, children, grandparents or from one wife to another, this rate shall be three percent in the urban areas.

The finance bill also ended the tax exemption over internet services. Internet bill over Rs 1500 per month shall be taxed at 19.5 percent under General Sales Tax. However, those using internet under Rs 1,500 per month shall be exempted from the tax.

The tax over Construction Sector was reduced from 16 percent to five percent. However, schemes under 2106-2017 PSDP, Cantonment Board Civil Works, development programs under foreign funding and Federal Government PSDP shall be exempt from this tax.

The stamp duty on document worth Rs 0.5 million will be Rs 500 while those in addition to that will be an additional Rs 1000. The finance bill maintained the exceptions for land types previously in place.

According to the new Finance Bill, the financial penalty for ‘Intrusion/ Obstruction of Government Business’ was raised from Rs 25,000 to Rs 100,000. It was also added that if any firm or business chose snot to register with the PRA, any of its licenses issued by any authority can be revoked by the Punjab Revenue Authority which can also prohibit any further licensing for the incumbent person or business.

The finance bill also ruled that Input Tax Services and Goods shall be adjusted in Key Output Tax through twelve equal installments. The opposition demanded that this finance bill should be approved through legislation so that all stakeholders should be taken on board and a more inclusive approach can be adopted. This demand however, was rejected upon which the opposition staged a token walk-out.  The session was prorogued till 11 am Wednesday.