ISLAMABAD: The government and property evaluators from all over the country have held successful talks on the issue of valuation of property and related tax matters in Islamabad on Saturday.
Talking to newsmen after the negotiations, Finance Minister Ishaq Dar said Federal Board of Revenue will issue notification of the value of immovable property henceforth instead of State Bank of Pakistan approved valuers.
The Minister said the holding period for capital gain tax has been reduced from five to three years. There will be no capital gain tax on property held for more than three years.
He said if the properties are acquired on or after 1st July 2016 and the holding period is up to one year, the capital gain tax will be 10 percent. It will be 7.5 percent if the period is between one and two years, and five percent in case of holding period between two to three years.
As regards the properties acquired before 1st July 2016, the capital gain tax will be five percent if the holding period is less than three years.
The Minister said basic threshold of three million rupees for application of withholding tax on purchase of immovable property has been enhanced to 4 million rupees.
The representatives of the real estate dealers thanked the government for accommodating their recommendations. They said the mechanism being developed will strengthen national economy.