Park View City has released the details of the new tax rates applicable on the sale and purchase of Residential & Commercial Plots as per the new budget released by Government of Pakistan. The new budget has been devised by FBR according to which all real estate sellers and buyers would be subjected to increased tax rates.
The motive of the government behind increasing tax applicable on the transfer of real estate files is said to be reduction of tax evasion and promotion of documentation in the real estate sector.
See more: FBR’s New Increased Tax Policy For Real Estate Buyers & Sellers (2023-2024)
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What are the new tax rates applicable on Park View City files and plots?
Sellers and Buyers who would fall in the category of Active Taxpayers will be charged with 2% tax rates. Inactive taxpayer sellers will pay 4% tax rates while Inactive Taxpayer buyers will pay 7% tax rates.
NOTE: Tax will be applied on Balloted Plot files only and needs to be paid on the second transfer.
The document attached below demonstrates the new tax rates applicable on Park View City members:
Who receives the tax paid?
The taxes paid by the sellers or buyers would be deposited to Government of Pakistan’s Treasury. The taxpayers will receive Challans as proof that they have paid their due tax.
The tax amount is based on the value of the property. The collected tax is expected to be used for expenses on the development of local infrastructure and other public facilities.
How can you pay the Tax to FBR?
You can visit the official website of FBR for the payment of your due taxes. The website allows you to create a profile and pay your taxes through ePayment.
Or the conventional method to pay tax is to visit the local property tax office.
Why is it necessary to pay taxes?
It is a legal requirement for a property owner to clear his or her taxes. Otherwise, the property holder may face penalties or legal consequences in this regard.
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