Govt move to increase tax collection on property transactions results in 35-percent drop

By
Ali Imran Syed
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Govt move to increase tax collection on property transactions results in 35-percent drop

 

KARACHI: The recent move to tax immovable property in accordance with prevailing property prices, while a good move to increase tax collection, according to experts has in the interim period resulted in fewer transactions by investors as a means to portray the move in a negative light.

Investors have halted transactions which have resulted in a net decline in tax collection in Sindh.

According to the Sindh Revenue Board (SRB), in comparison to the same period last year the stamp duty collection in July saw a decline of 35 percent.

Documents seen by Geo News show tax collected last year in July stood at Rs. 484 million while in July this year the amount fell under Rs. 320 million which if seen in comparison with the average-monthly-target stood at less than 50-percent.