Islamabad: The Senate Standing Committee on Finance and Revenue has turned down the proposal of the federal revenue body to raise the rate of levies on the sale and purchase of the property. The advance tax from 1 % to 2% on the filers has been rejected by the standing committee. The committee has however supported the proposed increase in the advance tax from 2 percent to 5 percent on the non-filers. The real estate representative Sardar Tahir Mahmood along with the officials of the Islamabad Chamber of Commerce and Industry also met the committee and argued that the real estate industry would be ruined if the government did not revisit the proposed increase in the tax related to the real estate sector.
Tax on Unused Property Imposed
PTI Senator Mohsin Aziz argued that the previous government had given full incentives to the sector but now the policies are moving in the opposite direction. The Senate Standing Committee on Finance and Revenues proposed amendments in the Finance Bill 2022 during the finalization of the recommendations on the Finance Bill. The meeting was held at the parliament house under the chairmanship of Senator Saleem Mandiwala. The committee recommended the government charge only one percent of market value as deemed income tax on plots having a market value of more than Rs 25 million after five years of transfer of land.
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The Senate body in its first opinion rejected the FBR’s 1 percent tax on plots valued at more than Rs 25 million but in the second thought, the senate body agreed to the proposal of the FBR and recommended that the deemed income should be taxed if the plot remains without construction up to five years. The senate standing committee also proposed an amendment regarding Capital Gain Tax (CGT). The Senate panel also proposed amendments in the holding period of the Capital Gains Tax (CGT) and recommended that the holding period of the plot should be reduced to 5 years from 6 years. The committee also recommended revising the existing slab for payment of Capital Gain Tax.