FBR decides to cut back proportion, length of property tax

The Federal Board of Income (FBR) has determined to cut back the length and the proportion of withholding tax on the acquisition of a property.

The length and the speed of property tax might be introduced by the federal government on Sunday.

At current, there isn’t any tax if the property is held for greater than three years. Nevertheless, if the property is bought inside three years a property tax might be imposed.

Based on the report, there might be no tax imposed on a home or a flat if bought after 4 years, nevertheless, a 5 per cent gross sales tax might be imposed on the property value Rs5million if bought earlier than 4 years.

After June 30, 15 per cent tax might be imposed on property bought inside 10 years of possession.

The finance invoice 2019-2020 has proposed a 10-year interval during which the speed of the curiosity to promote the property might be zero.