Property Tax: Punjab Fixes Property Tax Rate at 1%

Punjab Fixes Property Tax Rate at 1%

What is a Property Tax?

Property tax is a certain amount of money that a landowner has to pay to the government. These taxes are taken to help the government financially. Your tax amount is used to pay for salaries, build infrastructure, purchase goods, etc.

Also, the property tax does not cover your house alone. The property includes all kinds of tangible assets that you own including any plot in your name, house, office building, and farm, etc. You should follow real estate YouTube channels to get to know about this mega-industry real estate marketing trends include property tax, trends in real estate, and many more.

No doubt, today, building your home can be very expensive and difficult. With material costs, labor, and taxation, the overall costs increase by leaps and bounds. However, there are many banks in Pakistan that are providing home loans. Tax on purchase of property in Pakistan in 2020 is generally 25%.

Lahore: Punjab Chief Minister (CM) Pervaiz Elahi on Thursday (September 15) signed the bill fixing the property transfer rate at 1% of the total value of the property, news sources reported.

The new property transfer rate will apply to all property-related transactions, including commercial assets, across the province. According to a statement issued by the CM Office, the principal objective for lowering and regularising transfer rates is to encourage the real estate industry and expand building activity, producing more employment.

Bottom Line

Furthermore, it was said that the new policy is intended to bring relief to the masses in property-related concerns and is in line with the government’s vision of promoting the housing sector.

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It is worth noting that the property transfer rate previously varied across cities in Punjab and property types. The tax was determined on a rolling basis, with the government charging active taxpayers up to 1% and non-tax filers 2%.

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