The Punjab Government has decided to reduce Capital Value Tax & Stamp Duty on transfers of immovable properties lying in its jurisdiction. The decision was taken in view of the prevailing economic situation in the Country as markets are closed and literally all property transactions have stopped ever since the lockdown has been imposed across the province.
According to the decision, CVT and Stamp Duty on all immovable property transfers have been reduced to 2%. Earlier, these taxes amounted to 5% of the property value, i.e. DC value or FBR Value. CVT rate was 2% and Stamp Duty was 3%, so a total of 5% tax was charged from the purchaser at the time of transfer.
In order to support the economy, the Government has announced a comprehensive tax relief package worth 18 billion rupees. It is important to mention here that the tax cuts are meant for a certain period until normal business activities resume after the coronavirus issue is resolved.
Under the relief package, a number of tax cuts as well as exemptions have been announced in order to facilitate different businesses, especially online shopping, online merchants, real estate and construction, hospitals and medical services, and HR Development.
Following is the complete list of steps taken under Tax Relief Package:
Following are some details of the relief package published in daily jang:
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