The Punjab Assembly approved the Finance Bill 2024-25, which includes stringent measures to generate funds.
This budget was the talk of the town in recent weeks due to the rumors of imposing new property tax rates to generate revenue in different sectors, especially in the business of real estate.
The majority approved the Rs5446 billion Budget for fiscal year 2024-25, which was signed by Punjab Assembly Speaker Malik Muhammad Ahmad Khan. Property tax rates, which had been in place for 70 years, have been changed, further impacting inflation on citizens.
These developments will affect the populace of Pakistan which is struggling already due to the increased rates of electricity and other necessary commodities of daily life.
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New Property Tax Rates in Punjab 2024
Property Value Range Tax Rate
Residential Property up to Rs50lac Tax-free
Commercial property worth Rs5-10 million 0.07%
Commercial property worth R10-25 million 0.08%
Commercial property over 25 million 0.09%
After the adoption of budget 2024-25, the residential property up to Rs. 50 lakh Properties are tax-free, meaning no tax is charged on residential properties within this price range.
So, if you are planning to buy a house make sure it should be less than 50 lakh, So it will be tax-free.
On Commercial Properties of Rs5-10 million, commercial properties valued between Rs5-10 million are taxed at a rate of 0.07pc.
Properties valued at Rs10-25 million will be taxed at a rate of 0.08%. Commercial properties valued at more than Rs25 million are subject to a 0.09 percent tax.
The new strict measure anticipated collections of more than Rs30.065 billion from the Punjab Revenue Authority, Rs. 10.570 billion from the Board of Revenue, and billions from the Excise Department.
This will further increase the inflation rate in Pakistan and the poor community will be affected directly as well as the real estate business will also bear the consequences of these amendments.