FBR decides to reduce percentage, duration of property tax

The Federal Board of Revenue (FBR) has decided to reduce the duration and the percentage of withholding tax on the purchase of a property.

The duration and the rate of property tax will be announced by the government on Sunday.

At present, there is no tax if the property is held for more than three years. However, if the property is sold within three years a property tax will be imposed.

According to the report, there will be no tax imposed on a house or a flat if sold after four years, however, a five per cent sales tax will be imposed on the property worth Rs5million if sold before four years.

After June 30, 15 per cent tax will be imposed on property sold within 10 years of ownership.

The finance bill 2019-2020 has proposed a 10-year period in which the rate of the interest to sell the property will be zero.