As the National Assembly approved the tax-heavy budget on Friday, the government determined a duty rate on the excisable commodities, including the allocation or transfer of commercial property, for both taxpayers and non-taxpayers.
The government has determined the tax rate on the first allotment or transfer of open plots or residential property by any developer or builder, as well as the mode and manner of such transactions, subject to any conditions and restrictions that may be specified by the board, in accordance with the amended Finance Bill.
Three percent of the gross consideration amount would apply to a buyer who, on the date of property acquisition, appears on an active taxpayer list kept under section 181A of the Income Tax Ordinance, 2001.
Additionally, five percent of the gross amount of consideration involved would be the duty rate for a buyer who fails to file the income tax return by the deadline as stipulated in the proviso to Rule 1A of the Tenth Schedule to the Income Tax Ordinance, 2001.
Additionally, in the event that the buyer does not appear on the active taxpayer list kept up to date under section 181A of the Income Tax Act, the rate would be 7% of the gross amount of consideration involved.
