Punjab Government Increases the Stamp Duty on Immovable Luxury Houses
Punjab Government imposed an increment in the stamp duty on luxury houses; this increase was implemented on 15 June 2022. This is a one-time tax payable for the construction of houses with a land area of 2 Kanal or above. Stamp duty has been increased from 1% to 2% in the new tax policy presented in the budget for fiscal year 2022-2023.
According to the officials from the Punjab government, this increment will be effective from 1 July 2022 and the owners of 2 Kanal or above luxury homes will be liable to pay it for construction. People who submit the stamp duty till 30 June 2022 are exempted from the increment, they will pay the old tax price. According to the policy, any house covering an area of more than 6000 sq. ft. will be taxed according to the new policy.
The implementation of the stamp duty on luxury houses is as follows:
- PKR 300,000 up to 2.5 million per Kanal tax will be payable in case of a luxury house measuring from 2 Kanal (6000 sq. ft.) or more.
- PKR 400,000 up to 4 million per Kanal tax will be payable in case of immovable luxury house measuring 8 Kanal or more.
However, the government introduced convenient ways to pay the stamp duty on immovable luxury houses. Taxpayers are allowed to pay on a monthly, quarterly, or yearly basis. Moreover, discounts are also available for the taxpayers:
- 5% discount on payments made through e-payment systems.
- 5% yearly reduction in the first quarter.
Note: Surcharge (per month) will be applied if the payment is made in the third or fourth quarter of the year on the total payable tax.
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