Friday, February 28, 2014

Property Tax in Pakistan



Property Tax in Pakistan



Property Tax in Pakistan is a local tax on properties. A local tax is a tax that falls in jurisdiction of a local government as against federal and provincial taxes which fall in jurisdiction of the federal and provincial governments respectively. All the four provinces have their legislation on the property tax assessment and collection. The laws are:
  1. The Punjab Urban Immovable Property Tax Act 1958;
  2. The Sindh Urban Immovable Property Tax Act 1958;
  3. The Khyber-Pakhtunkhwa Urban Immovable Property Tax Act 1958; and
  4. The Balochistan Urban Immovable Property Tax Act 1958.

These laws are similar in nature and mechanism for assessment and collection of Property Tax. Hence, if you are good at understanding and using tax payment system in a province, you can easily translate your knowldge for use in other provinces.

Property tax is calculated on the value of a property; the value in turn is assessed value of the property, not market value.

Property Tax in Pakistan is a local tax, but it is not assessed and collected by the local government. Four provincial governments collect this tax for local governments. They get collection charges of 15% and give the rest of collection (85%) to their local governments in ratio of tax collected from the geographical areas under the local governments.

You may also like to read:

How to use Property Tax Calculator

What are the property tax rates in Punjab, Pakistan

What is PT1?


7 comments:

  1. hi, i am purchasing a house of 10 marlas with 2 registries of 5 marlas each (marla = 272 sq ft in Gujrat, pk). total of 2720 sq ft (1360+1360)

    How much total cost would there be of taxes? (in percentage)
    Will the CVT tax be applicable?
    what other taxes have i got to pay.
    Any way to save taxes?

    PS: 2 parts of 5 marlas already have and will have 2 owners in future as well.
    Thanks for your quick reply in advance!
    Regards,

    ReplyDelete
    Replies
    1. Hi,

      1- Total Cost 6.5% or less;
      2- Yes, it is in fact Capital Gain Tax, or CGT now;
      3- Transfer Fee, Stamp Duty, CGT, and local government tax on transfer of properties; and
      4- The taxes varies with the value of the property, try to have a deal with lesser amount!

      The division into two parts has almost no effect on taxes, or even the property tax payable after the purchase. However, if you got the property physically divided into two parts, the property tax will be exempted.

      Any other query?

      Delete
  2. Thanks Author

    I read regularly your articles and its very useful and informative .If you have no objection and you allow me then i can post your articles in my bahria town classified ads websites and blogs .because i m not good English article writer like you. and without your permission i will not publish your articles on my website so that's why i need your permission. so many people visit daily on our website and we need good articles. My website is www.ebahriatown.com and ebahriatown.blogspot.com

    ReplyDelete
    Replies
    1. Thank you for the comments, Mr. Waleed.

      The articles are not to be published anywhere else. However, I can write articles for your website and blog as a guest author without any charges. The topics will of course be real estate and real estate taxes.

      Let me know of your thoughts?

      Delete
  3. Not only will a property management Oxnard CA puts potential renters under extensive background checks, they will take care of all of the maintenance of your property and if legal steps need to be taken then their landlord resources will take care of those as well. View Our Website

    ReplyDelete
  4. Its really very informative article about Property Tax in Pakistan.
    Plots for Sale in Lahore


    ReplyDelete
  5. Get info Property
    Awesome Ur Blog !
    Suppliers Universal Property Network Best Services Properties in Pakistan
    Really take a look at It
    rewardbloggers
    clyp.it
    mytradezone
    codecademy
    alltrails

    ReplyDelete