Vital City Kasur‎ Declared As ILLEGAL Housing Society BY LDA

VITAL CITY KASuR‎ DECLARED AS ILLEGAL Housing society BY LDA

via www.express.com.pk/

Al Rehman Garden Phase 4 Lahore‎ declared as illegal extension by LDA

Al Rehman Garden Phase 4 Lahore‎ declared as illegal extension by LDA

VIA www.express.com

Lake City offers possession in M2 (A)

Lake City offers possession in M2 (A) – where is the society headed?

Lake City is one of the most sought after housing projects on Raiwind Road and now enjoys excellent access because of the development of Alternate Route. Possession is handed over for 10-marla plots in Block M2 (A) of the society on Friday September 9, 2016, which probably means that the block will now be approached by home buyers instead of investors.

Usually, property prices in a particular locality experience a jump after possession, and the same can be said for M2 (A). Please the see table below to have an idea of prices before and after possession:

Plot category	Price range before possession	Price range after possession
10 marla	PKR 7,000,000 to PKR 8,000,000	PKR 8,000,000 to PKR 9,000,000

As you can see that prices of 10-marla plots in the locality have increased by PKR 10,000,00 after possession and it is expected that these plots will hit PKR 10,000,000 mark within 6 months or so because of the fact that this sector is adjacent to Ring Road.

Previously Lake City offered possession of 5-Marla plots in sector M7(b) where prices are now around 4.5 Million +

Which blocks are next in line for possession?

It is expected that Blocks M3 (a) will get possession in coming month, however, no official statement has been given by Lake City in this regard.

Development work is almost complete in both blocks, located along the Alternate Route. Property prices have already increased manifold in these blocks, but there is still a room for further growth. The table below will give you an idea of current prices in the said blocks:

Block M3(a)
12 marla	PKR 7,500,000 to PKR 8,500,000
14 marla	PKR 8500,000 to PKR 9,000,000
1 kanal	PKR 10,500,000 to PKR 12,500,000

On the other hand, possession for 5-marla plots will be handed over in Block M7(c) within 6 months. Currently, the market value of on-ground plots in the block is PKR 3,500,000 and you can expect a price surge upon possession for this particular plot category.

Though 5-, 7- and 10-marla plot files are up for grabs on instalments in Lake City, if you are still on the lookout for on-ground plots, you need to head to M8, where 5- and 7-marla plots are available on cash payment for PKR 3,000,000 to 3,500,000 and 3,800,000 to 4500,000 respectively. However, the area is undeveloped and Lake City will take some years to complete development work in the block

Al-Wahab Garden is declared illegal by LDA

Al-Wahab Garden is declared illegal by LDA

Al-Wahab Garden is declared illegal by LDA. So it is advised that buyers should avoid buying property in illegal extension otherwise they will be held responsible for their losses.

 

 via www.express.com.pk

Lahore Motorway City (Extension) is declared illegal by LDA

Lahore Motorway City (Extension) is declared illegal by LDA 

 

Lahore Motorway City (Extension) is declared illegal by LDA. So it is advised that buyers should avoid buying property in illegal extension otherwise they will be held responsible for their losses.

via  express.com.pk

PM performs groundbreaking of Shorkot-Khanewal section of M-4 motorway

Prime Minister Nawaz Sharif on Saturday performed the groundbreaking of Shorkot-Khanewal section of M-4 motorway.

The project will be completed at a cost of about Rs20 billion over a period of two years.

PM wants power projects ready by tenure’s end

“Reduced distances will boost the economy,” PM Nawaz said as he addressed the inauguration ceremony. Lauding the efforts of all those involved in development projects across the country, the premier claimed,  “No one in the world calls Pakistan a failed state anymore.”

After completion, the project will improve Pakistan’s vital north-south road network, promote economic growth, create employment opportunities and ensure regional connectivity.

“We are not working for a particular class, instead we are working for the entire nation. Everyone from labourers to the common man will benefit from these projects,” PM Nawaz said. “The nation is out of the state of despondency and is now treading the path of hope.”

PM performs groundbreaking of China-Pakistan Optical Fibre Cable project in G-B

The M-4 Faisalabad-Multan motorway, which is 240 kilometers long, is divided into four sections. Faisalabad-Gojra and Khanewal-Multan sections have already been completed, while work on Gojra-Shorkot section is underway. Work on the fourth section of Shorkot-Khanewal will begin today.

The M-4 is also a step towards positioning Pakistan to act as a transit artery for goods moving between the port city of Karachi and Gwadar in the south, to Torkham on the northern border with Afghanistan. It will eventually link the ports with land-locked regions of Central Asia.

Via tribune.com.pk

FBR notifies property valuation rates for 16 cities

The Federal Board of Revenue [FBR] notified fresh property valuation rates for 16 major cities of the country, Tuesday, providing a new base for the collection of withholding and capital gains tax.

It notified rates for Lahore, Multan, Gujranwala, Faisalabad, Sialkot, Islamabad, Karachi, Hyderabad, Sukkur, Sargodha, Mardan, Abbottabad, Peshawar, Quetta and Gwadar.

Property valuation deal violates 2013 SC ruling

The authorities picked 21 cities for determining fresh, but slightly compromised, property valuation rates during its negotiations with the representatives of the real estate sector. The rates of the remaining five cities are expected to be notified in the next few days.

The rates have been notified with effect from July 31. Withholding tax rates range from 1% to 4% while the CGT rates are in the range of 5% to 10%.

The government and the realty sector representatives had agreed to increase the rates, which are higher than Deputy Collector [DC] rates but far lower than the prevailing market rates. These rates will become the base for collecting withholding taxes from the sellers and purchasers of the properties and the capital gains tax on profits made from these transactions. President Mamnoon Hussain has already promulgated an Ordinance to give effect to the deal, which also includes tax amnesty on past transactions.

The government will not ask the source of income from those who invested in the real estate sector before June 30 this year.

Karachi

The government has divided Karachi into nine categories for the purpose of collecting taxes. The A-1 category including residential plots, commercial, industrial and flats carry the highest values and the lowest valuations have been fixed for category VIII properties.

In Karachi the category A-I’s per square yard residential open plot rate has been fixed at Rs35,000. Constructed residential property rate is Rs40,000 per square yard, commercial open plot at Rs100,000 per square yard, constructed commercial plot Rs67,000 per square yard and flats/apartments rate is Rs5,000 per square foot.

Real estate set to win biggest tax amnesty

The A-I residential areas are civil lines, Clifton quarters excluding Shireen Jinnah colony, Defense House Authority [DHA] from phase one to four, Dhoraji cooperative housing society, Garden East quarters, KDA Officers Housing Society, KDA scheme 1 and 1A, Karachi Administrative Housing Society, Karachi administrative cooperative housing society, Mohammad Ali Cooperative Housing Society, Muslim Colony, Pakistan Employees Cooperative Housing Society, Sindh Muslim Cooperative Society and upper Gizri PS Girzri.

The FBR has notified Gwadar city rates, which are being developed as part of China-Pakistan Economic Corridor [CPEC], in terms of per acre and square yards. The maximum per acre price is set at Rs15 million for airport road land followed by Rs13.8 million for SHS commercial. The maximum per 1,000 square yard rate has been notified at Rs5.4 million for Marine Drive Ankara Junubi and new town housing scheme.

Islamabad

For Islamabad, the FBR has notified the residential areas rates in the range of Rs15,000 per 200 square yards to Rs57,150 per 2,000 square yard plot. For the commercial properties, the new notified rates in Islamabad are in the range of Rs13,000 per square foot to Rs123,750, depending upon the locality. For flats and apartments, new rates have been set up to Rs4,930 per square foot.

The Islamabad Bahria Enclaves rates have been notified in the range of Rs4 million for 272 square yard plot to Rs8 million for 500 square yard plot.

Rawalpindi

The posh residential localities rates in the Rawalpindi city have been notified in the range of Rs225,00 per Marla for Phase VIII Bahria town to Rs600,000 Executive Meadows Phase III of Bahria Town. For most of the Bahria town phases, the per marla rate is up to Rs375,000. The residential city centres, like Satellite town, are priced at Rs1.4 million per marla for taxation.

Lahore

There are vast gaps between the per marla residential prices in Lahore, ranging from Rs168,000 to Rs3.8 million per marla.

Taxing real estate: Govt forms body to address concerns of property dealers

The residential property at Azam cloth market has been priced at Rs3.8 million per marla. The fruit market Badami Bagh per marla rate is Rs2.37 million, circular road residential are rate is Rs2.2 million, Lyton road Rs1.6 million, Hall road Rs1.4 million and Tempal road Rs1.2 million.

The commercial properties per marla prices in Lahore also vary, ranging up to Rs5.6 million in Lyton road. However, yet these prices seem very low than the prevailing market rates.

Peshawar

In Peshawar, the notified prices for residential areas vary from as low as Rs22,000 per marla to Rs1.1 million in Saddar bazaar.

Hyderabad

Hyderabad property valuations have been notified on the pattern of Karachi but the rates are relatively lower than in the country’s largest metropolitan. The notified rates for Sukkur are even lower than Hyderabad rates.

Published in The Express Tribune, August 3^rd, 2016.

via The Express Tribune

via Express

New Tax Legislation on Property

New Tax Legislation on Property

via Jang

ISLAMABAD: The president of Pakistan on Sunday promulgated the Income Tax (2nd Amendment) Ordinance 2016 to implement the valuation rate of property, which would come into force throughout the country with immediate effect.

The ordinance came into force when the Federal Board of Revenue (FBR) and property stakeholders struck a deal in this regard a day earlier.According to the ordinance, civil servants and military officers are entitled to get a 50 percent waiver in the Capital Gains Tax on the sale of a plot given to them by the government.

The heirs of martyrs would be exempted from Capital Gains Tax and withholding tax on the plots given to them by the government.Federal Minister for Finance Ishaq Dar, while addressing a press conference at the Punjab House, announced to repeal the Customs Act 1969 from Pata.

The government promulgated the ordinance to implement the valuation rate of fair market value of property, which would increase its market value in the range of two to 10 times on an average for major cities.

Ishaq Dar said, “We want to avoid holding up of transactions because of confusion so the government decided to adopt the path of the promulgation of a presidential ordinance to this effect. It will help implement the Turkish model to increase tax-to-GDP ratio from 10 to 26 percent. We expect that this new mechanism of evaluation of property for the purpose of federal taxation will fetch seven to eight times more revenue to the tune of Rs60 to Rs70 billion in the current fiscal year while the government had collected Rs8 billion from property transactions in the last financial year.”

Regarding the repeal of the Customs Act from Pata, the minister said that on the request of the KP government, the federal government had implemented the Customs Act 1969 in Pata and now the government again repealed it on the recommendation of the KP government.

The federal government, he said, had never made any issue of its ego so first it was implemented when the KP CM had moved an official summary and now they had asked to repeal it and PM Nawaz Sharif granted an approval after his return from London.

KP moved the summary and the PM granted approval and forwarded it to president for getting its final assent, the minister said and added that now it was repealed after president’s approval.

Flanked by PML-N leaderEngineer Amir Muqam, Capt (R) Muhammad Safdar and others, the federal minister said the government exempted dependents of Shaheed’s from payment of evaluation of property tax on first land transaction and 50 percent tax would be waived off for Pakistan civil servants for getting plots.

To a query regarding exemption for property transactions in DHA, the minister said that there was no exemption for DHA and only dependents of martyred could avail themselves of this tax facility for the purpose of first transaction.

Answering another query regarding agreement with property dealers, the minister said the Centre would make contacts with the provinces as their DC rates would remain intact because the federal government empowered the FBR to notify the valuation of fair market of properties for the purpose of payment of federal taxes such as withholding tax and capital gains tax. Now the provinces could adopt new rates so they could reduce the rate of stamp duty accordingly to facilitate the business.

via The News

Lake City offers possession in M7 (b)

Lake City offers possession in M7 (b) – where is the society headed?

Lake City is one of the most sought after housing projects on Raiwind Road and now enjoys excellent access because of the development of Alternate Route. Possession was handed over for 5-marla plots in Block M7 (b) of the society on Monday, which probably means that the block will now be approached by home buyers instead of investors.

Usually, property prices in a particular locality experience a jump after possession, and the same can be said for M7 (b). Please the see table below to have an idea of prices before and after possession:

Plot category	Price range before possession	Price range after possession
5 marla	PKR 3,500,000 to PKR 4,300,000	PKR 3,800,000 to PKR 4,500,000

As you can see that prices of 5-marla plots in the locality have increased PKR 200,000 to 300,000 after possession and it is expected that these plots will hit PKR 5,000,000 mark within 6 months or so.

Which blocks are next in line for possession?

It is expected that Blocks M2 (a) and M3 (a) will get possession in September, however, no official statement has been given by Lake City in this regard.

Development work is almost complete in both blocks, located along the Alternate Route. Property prices have already increased manifold in these blocks, but there is still a room for further growth. The table below will give you an idea of current prices in the said blocks:

Block M2(a)
Plot category	Market Price
10 marla	PKR 7,000,000 to PKR 8,000,000
Block M3(a)
12 marla	PKR 7,500,000 to PKR 8,500,000
14 marla	PKR 8500,000 to PKR 9,000,000
1 kanal	PKR 10,500,000 to PKR 12,500,000

On the other hand, possession for 5-marla plots will be handed over in Block M7(c) within 6 months. Currently, the market value of on-ground plots in the block is PKR 3,500,000 and you can expect a price surge upon possession for this particular plot category.

Though 5-, 7- and 10-marla plot files are up for grabs on instalments in Lake City, if you are still on the lookout for on-ground plots, you need to head to M8, where 5- and 7-marla plots are available on cash payment for PKR 3,000,000 to 3,500,000 and 3,800,000 to 4500,000 respectively. However, the area is undeveloped and Lake City will take some years to complete development work in the block

Via Zameen.com

Real estate set to win biggest tax amnesty

The government on Thursday agreed, in principle, to offer the biggest ever tax amnesty scheme in the country’s history, which will whiten a whopping Rs7 trillion untaxed and black money currently stashed in the real estate sector

Finance Minister Ishaq Dar and representatives of the real estate sector discussed the broader contours of the amnesty scheme, which will be implemented by either promulgating a presidential ordinance or introducing a bill in parliament, said a government official. It was the third round of talks in last four days.

After the talks, Dar told media that the next meeting will be held on Wednesday in which real estate sector representatives and FBR officials will share their respective property valuation rates. “On Wednesday, the two parties will reach a consensus as things are going towards positive direction,” he said.

Real estate sector representatives would bring their own property valuation rates of 18 main cities and FBR officials will share their rates. On the basis of both the rates, valuers will work out ‘consensus rates’. These determinations then will become the base for giving amnesty on past transactions and calculating taxes on future transactions, said the officials.

Dar ducked three repeated questions on whether the government was going to give another tax amnesty scheme and left the venue. It will be the tenth amnesty scheme in the history of the country and the third of the PML-N government in last as many years. The government’s last tax amnesty scheme to traders miserably failed, as it could bring in only 9,090 traders in the net against the claim of over one million.

The need for the tax amnesty scheme arose after the government brought legal changes to determine fair market value of the properties by amending Income Tax Ordinance through Finance Act 2016. However, a move that was initially aimed at capturing actual income gains from the property transactions would end up whitening about Rs7 trillion untaxed and black money currently parked in the real estate sector.

The ill-conceived changes in the tax law immediately created two problems, putting a question mark over trillions of rupees transactions carried out till June 30 and the fair market value of the future transactions, said a senior government official who attended the negotiations.

A government official told The Express Tribune that it has been decided that the government would not ask the source of income of the past transactions from investors.

Abdul Rauf Alam, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said that this issue was not only the issue of real estate and builders associations but it was the issue of every businessperson, industrialist, importer, exporter and bureaucrat.

Since the beneficiaries of the schemes are from all segments of society, the scheme is expected to pass through all the legal obstacles, said FBR officials.

“The big players in speculative business in real estate and capital markets are the beneficiaries of policies of appeasement,” said eminent tax expert Dr Ikramul Haq. He said these big players, in between politicians and corrupt bureaucrats, get their share courtesy a few leading tax experts who in connivance with some stalwart in FBR provide support to tax evaders. Haq added that the whitening of assets by compromise is a great fraud depriving the country of trillions of rupees in taxes.

According to the broader contours of the likely amnesty scheme the government would settle the past property transactions by charging a fixed tax of 4% to 5% of the price differential between the deputy collector rates and the new rates, which will be determined by next week.

Published in The Express Tribune, July 22^nd, 2016.

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Pakistan rated among top emerging economies

Another international ratings agency has put Pakistan among top emerging South Asian economies because of continuity of policies and political stability.

2015-16: China helps as FDI in Pakistan surges 38.8%

Atlantic Media Company (AMC) of the United States has ranked Pakistan as a comparatively stronger economy in South Asian markets and expects the country will grow rapidly during the days ahead.

According to an AMC report, Pakistan government’s investment in infrastructure and other development projects has caused the country’s gross domestic product to grow.

The economy: All is not well

“It is acknowledged internationally that Pakistan is surfacing as a ‘market leader’. Current economic conditions of Pakistan are attracting foreign investors,” AMC noted.

It said last month the American stock index provider MSCI also included Pakistan among 10 most emerging economies in the world.

AMC pointed out that the security situation in Pakistan had also improved, resulting in economic stability.

China’s Premier says world should step up economic policy coordination

Moreover, $46 billion investment in the China-Pakistan Economic Corridor would help Pakistan overcome chronic problems like power crisis and unemployment.

It said the KSE 100-share Index had been performing the best among Asian markets during 2016 and was ranked as world’s fifth best stock market.

Published in The Express Tribune, July 22^nd, 2016.

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Fiscal plan: LDA budget approved

LAHORE: 

The Lahore Development Authority (LDA) governing body on Thursday approved Rs93.48 annual budget of the LDA and its subordinate agencies – the Water and Sanitation Agency (WASA) and the Traffic Engineering and Transport Planning Agency (TEPA).

Governing body member Khwaja Ahmad Hassaan chaired the budget session, attended by MPAs Baoo Muhammad Akhtar from Lahore and Rana Muhammad Arshad from Nankana Sahib, LDA Director General Nabeel Javed, WASA Managing Director Naseer Ahmad, TEPA Chief Engineer Saifur Rehman, Chief Metropolitan Planner Waheed Ahmad Butt and LDA Finance Director Zaheer Asghar Rana.

Resources of the LDA, the WASA and the TEPA have been estimated at Rs93.48 billion. Of this, Rs80 billion has been earmarked for development works in Lahore, Sheikupura, Nankan Sahib and Kasur.

LDA (Urban Development Wing)

Resources available to the LDA (UD Wing) during 2016-17 have been estimated at Rs71.86 billion. Development expenditures of Rs68 billion are planned.

Rs56.1 billion is to be provided by the provincial government, for executing various development projects under the Annual Development Programme and deposit works notably the Lahore Orange Line Metro Train project.

Rs5.82 billion has been allocated for development activities in LDA housing schemes. This includes Rs1.52 billion for LDA Avenue-I; Rs350 million for the construction of roads, water supply and sewerage lines in the Finance and Trade Centre, Johar Town; Rs350 million for LDA City; and Rs3.5 billion for development projects in various LDA housing schemes. The projects include construction of an underpass at the railway crossing near Gurumangat Road, Gulberg; remodelling of junctions and U-turns at Maulana Shaukat Ali Road; Khayaban-i-Firdousi; and Khyban-i-Jinnah.

Rs449 million will be spent on the construction of LDA office buildings in Johar Town and Sheikupura and official residences for employees. Rs30 million will be spent on the construction of a pedestrian bridge in front of Girls College, Gujjarpura.

Rs3.63 billion has been allocated for new projects in Lahore. These include Rs2.28 billion for the construction of Defence Road Flyover, Sharaqpur Bypass, Southern Bypass and Kala Shah Kaku Expressway.

A sum of Rs3.72 billion has been allocated for the widening of Canal Bank Road and construction of Chobucha Underpass.  Rs400 million will be spent on the  construction of an underpasses on Sheikhupura-Gujranwala Road and Sheikhupura-Hafizabad Road, Sheikhupura. A hockey stadium will be built in Nanakana Sahib at a cost of Rs500 million.

Rs3.37 billion has been allocated for the Orange Line Metro Train project, allied works and security services.

Widening and improvement of Bedian Road, Burki Road and adjoining roads will cost Rs5.84 billion. Remodelling of junctions along Multan Road from Chauburji to Multan Chungi will be carried out at a cost of Rs5.12 billion.

A hockey stadium will be constructed in Sheikupura at a cost of Rs240 million.

WASA

The agency excepts receipts of Rs18.77 billion during 2016-17. It will spend Rs18.84 billion, including Rs9.81 billion, on development schemes. Rs5.49 billion has been reserved for ongoing development schemes.

TEPA

The agency will have Rs2.855 billion at its disposal; its expenditures have been estimated at Rs2.54 billion, including Rs2.19 billion for development schemes.

Rs134 million will be spent on the construction of Kasur Sports Complex. Rs745 million has been allocated for the construction of a flyover at Kacha Jail Road.

Published in The Express Tribune, July 15^th, 2016.

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Lda city: Buyers can check payment info online 

LAHORE: 

The Lahore Development Authority has uploaded information of plot file holders in LDA City, its latest real estate project in the city, on its website.

A spokesperson for the authority said the step had been taken to ensure transparency and to boost buyers’ confidence in the authority’s operations.

He said those holding files of plots in the new scheme could check their payment details and remaining balance by entering their Computerised National Identity Card (CNIC) number and file number at the LDA website.

Separately, the LDA governing body decided to continue a ban on temporary commercialisation in LDA Avenue-I, Jubilee Town and Mohlanwal Housing Scheme.

It decided that the schemes would be developed in accordance with their original development plans.

Commercial activities would be allowed only in the commercial zones identified in the original plans for these schemes, it decided.

Published in The Express Tribune, July 12^th, 2016.

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