|Lahore: Local District Collectors (DCs) have provided their approval to the increase in the sarkari (official) rates for immovable properties in the province, according to a news source. As per details, the said rates have been increased by 10% to 15%.
It is pertinent to mention here that the Punjab government did not impose any new taxes on property transactions for Fiscal Year (FY) 2020-21 and further reduced the stamp duty from the previous 2% to 1% in an attempt to promote related activities in the real estate sector.
Read: Budget 2020-21: Relief measures announced for real estate, construction sectors
Moreover, the provincial government, during its budget 2020-21 announcement suggested the postponement of application of valuation tables on immovable property for collection of taxes applicable at the federal level for one year starting from today (July 1).
With the approval granted to increase the DC rate by 10% to 15% according to value and demand of properties in respective cities and areas within these cities, the new benchmark rate for collection of provincial taxes on property transfers has come been implemented from today onwards.
Read: Tax relief measures announced under Finance Bill 2020 to go in effect today
Sources also claim that due to imposition of new DC rates, an unusual activity was witnessed in property registration branches in Lahore during the last few days of June (the closing period of FY2019-20), when people attempted to get their property transfer related tasks completed by June 30 to avoid tax payments in the upcoming FY.