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