| Lahore: The Punjab Land Records Authority (PLRA) has directed revenue officers across the province to adhere to the recently revised tax rates applicable to buyers and sellers of immovable properties for the ongoing fiscal year, according to news published on August 10.
Read: PLRA trains officials on e-registration of property records
The Finance Act of 2023 has undergone amendments, leading to adjustments in income tax rates and relevant provisions outlined in the Income Tax Ordinance of 2001.
Under the previous framework, individuals classified as tax filers were subject to a 2% tax rate for property sales and purchases, while non-filers faced a higher rate of 4%. However, the updated tax structure for tax filers now stands at 3%, whereas non-filers are subject to an increased rate of 6% for any property sales or transfers.
Formerly, tax filers were obligated to pay a 3% tax rate, whereas non-filers encountered a higher 7% tax rate when involved in property transactions. With the newly implemented revised rates now in effect, the tax rate for tax filers remains at 3%. However, non-filers are now subject to a significantly higher tax rate of 10.5 % when engaging in property purchases.
Read: Punjab-wide assessment of property tax approved
The Board of Revenue officials (whose names were not disclosed) highlighted that this implementation of updated tax rates is anticipated to result in higher revenue generation and the establishment of a more equitable taxation system within the real estate sector. |
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