Real Estate Sector Demands Reverting Property Valuation to Provincial Governments
The real estate sector in Pakistan has come up with a proposal to revert the property valuation to the provincial authorities. This will include the tax structure and property valuation to be done by the provinces rather than the federal authorities.
Provincial Government bodies are more capable, and they have ground teams that can ensure tax collection and property valuation. On the other hand, Federal Government lacks resources for a large-scale collection and this will also reduce the chances of fraud.
The tax rates must also be revised, and they must not be according to the Federal Government rates but with the DC rates. It was proposed that the Advanced Tax should be reduced by 0.25% for filers and the non-filers to pay 2%.
Similarly, the Capital Gains Tax must be reduced by 0.75% for filers, and for non-filers, the tax must remain the same. And the minimum time for tax calculation should be reduced to 3 years which is previously 4 years.
There was a previous bill to create an organization Real Estate Regulatory Authority (RERA) to manage the real estate sector in Pakistan. It is proposed that this bill must be approved, and RERA must become functional.
The current rate of property transfer must also be reduced by 50% to make the sale and purchase of property much easier for new investors. All this can be done if the power is being handed over to the provincial government to ensure the smooth functioning of the real estate sector.
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