- Property Transactions shall be recorded at the value declared by the buyer and the seller of the Property.
- Property Rates notified by FBR (for the purpose of collection of taxes on sale / purchase of property) and DC rates are to be abolished.
- At the Federal level, a one percent adjustable advance tax from the purchaser on the declared value shall be collected and this tax shall replace the existing withholding tax on sellers and purchasers of Property.
- Non-filers shall not be permitted to purchase property having declared value exceeding Rs. 4,000,000/- (four million rupees).
- Provinces shall be reque
sted to abolish the provincial rates for the collection of stamp duty (commonly known as DC rates) and to collect a total of one percent tax under stamp duty and capital value tax on the value declared by the buyer and the seller of property. - In order to deter under-declaration and consequent loss of revenue, FBR shall have the right to purchase any property within six months of registration by paying a certain amount over and above the declared value which may be 100 percent in the fiscal year 2018-19, 75 percent in the fiscal year 2019-20 and 50 percent in the fiscal year 2020-21 and thereafter.
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M. Adil Hussain
Future Chartered Accountants 