NEW PROPERTY TAXES
No country or nation’s economy can be strong without paying taxes. Property Tax, General Sales Tax, Social Security Tax, Labor Tax, Tourism Tax, Income Tax, Advertisement Tax, TV License Fee, Tube well Tax, Road tax and withholding tax are the direct taxes that every Pakistani is paying to the state. Pakistan historically has very bad balance between direct and indirect taxes in the country’s gross tax revenue.
In 2022-23, the capital gains tax on income from the sale of property in one year has been increased to 15%, which will be reduced by 2.5% every year and after 6 years this tax will be zero. The rate of advance tax on the sale and purchase of property has been increased from 1% to 2%, while the rate of advance tax on non-filers will be 5% is part of the budget. The tax rate on savings has been reduced, as well as the maximum 10% tax on profits from investing in welfare savings certificates, pensioners benefit accounts, and martyrs’ family welfare accounts has been reduced to 5%. For those involved in the property business and for the general public who have invested in it. This is certainly a very frustrating situation. This decision is in many ways very wrong and unfair with more than forty related sectors involved in construction. Therefore, the proposed tax changes will have an impact on the industry. Therefore, the government should withdraw the property tax imposed in the Finance Bill 2022-23 as it deprives a citizen of his basic right and business. Discourage expansion Registered income tax returns should be exempt from properties to encourage construction work and create better employment opportunities as the proposed tax measures will affect the construction sector more than 40 related construction sectors are linked. So the proposed tax changes will have an impact on the industry. The overseas Pakistanis spend heavily on Pakistani construction. Those who send dollars to other countries will be taxed under the new rules. Property taxes will have to be re-examined to attract new foreign investment and restore investor confidence in the country. We appeal to the government of Pakistan to review the increase in the property tax and restore the old rate of a property tax and withdraw the increase because the property taxes rise despite Corona’s devastation.
There is open injustice from nine lakh property tax payers of Punjab.