Increased stamp tax on urban properties in the 2022-23 budget
Increased stamp tax on urban properties in the 2022-23 budget. On Wednesday, the Punjab government raised the stamp duty on urban real estate from 1% to 2% and changed the one-time tax on building luxury homes of two Kanals or more.
According to the budget document, the proposed finance bill for 2022 kept the tax breaks of 95% for the registration and token tax of electric vehicles. The government said that these steps would free up more than Rs20 billion in funds.
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The proposed bill says that after eight years, the government has raised the tax rate on homes that are two Kanals or more significant. 2014 was the last time it was changed. The proposed tax rate says that it will go into effect on July 1, 2022, for luxury homes that are finished being built. But the old rates would still be used for luxury homes that were finished by June 30 of this year.
According to the new proposed rates, the tax rate for the Lahore District has gone up from Rs200,000 per kanal to Rs2 million for luxury homes on two kanals or more with a covered area of more than 6,000 square feet to Rs300,000 per kanal to Rs2.5 million. For properties with a covered area of more than 12,000 square feet and more than eight kanals, the new tax rate is Rs400,000 per kanal, up from Rs300,000 per kanal, up to a maximum of Rs3.6 million.
Also, the government will keep the tax breaks it has given in the past for paying taxes through an e-payment system in the tax year 2022-23. When tax is paid through the e-payment system, a discount equal to 5% of the tax paid will be given. The tax can be paid once a year or twice a year, depending on what the assessee wants. The tax will be collected in the following ways for the financial year 2022-23: I, in the first quarter, the annual tax will be collected with a 5% rebate; (ii) in the second quarter, the annual tax will be collected without a rebate; and (iii) in the third and fourth quarters, the annual tax will be collected with a 1% surcharge per month on
The goal of raising the stamp duty is to get more money from transactions and bring the rates in cities and towns closer together. In urban areas, stamp duty is currently charged at a rate of 1%. It is proposed that this rate be raised to 2%.
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