Non-filers banned from purchase of property worth Rs4mn

ISLAMABAD: Non-filers would not be able to purchase property worth Rs4 million in the next fiscal year whereas filers would have to only pay one percent tax on the purchase of properties, the government announced on Friday. 

Finance Minister Miftah Ismail presented the sixth and final budget of the Pakistan Muslim League-Nawaz (PML-N) earlier today, much to the ire of the opposition benches who said the move by the ruling party was unconstitutional as it could not decide on the financial plan for the country beyond its tenure. 

In the budget speech, the newly sworn-in minister announced the new rules for purchase of property. 

Earlier this month, on April 6, the government had announced a five-point tax reforms package and amnesty scheme for nonfilers with a focus on property sector tax regime. 

The government had introduced a 1 percent income tax on all property transactions. It had also said the advance tax would be adjusted in the income tax liability. The federal government had also asked the provinces to lower the rates to one percent to discourage undervalue declaration.

The prime minister had said that in order to check the understatement of property value, the government would have the right to purchase a property on double the value declared by the owner during the year 2018-19, at 75 percent more in 2019-20 and at 50 percent more in 2020-21.