Business

ISLAMABAD – The government and property valuers from all over the nation on Saturday held successful talks on the valuation of property and related tax matters in Islamabad.

Speaking to reporters after the negotiations, Finance Minister Ishaq Dar said the Federal Board of Revenue would publish notices on the value of immovable properties from now on, instead of the State Bank of Pakistan-approved Valuers.

The Minister said the holding period for capital gains tax had been cut from five to three years. There will be no capital gains taxation on property maintained for more than three years, he added.

He said that properties acquired on or after 1st July 2016, would be taxed at  10 percent, if they had been held for one year, 7.5 percent if they had been held for between one and two years, and five percent in case they had been held between 2 to 3 years.

For properties acquired before 1st July 2016, capital gains tax would be five percent if the retention period was less than three years, he added.

The Minister said the basic threshold of three million rupees for the application of withholding tax on the purchase of immovable property had been enhanced to 4 million rupees.

Representatives of the real estate dealers thanked the government for accommodating their recommendations. They said the mechanism being developed would strengthen the national economy.