FBR has finally published fair market values for DHA lahore and other societies in Lahore. This fair market price is almost 30 to 35% more than the previous DC values in case of residential plot prices and 200 to 250% more in case of commercial plot prices.
The Government has also reduced the CGT time duration to 3 years instead of 5 at following rates:
- 10% for first year.
- 7.5% for second year.
- 5% for 3rd year.
CGT will be charged at a flat rate of 5% if properties purchased before 1st July 2016 are sold within the 3 year time period applicable for CGT . In case of army officers and Govt officers allotted plots the CGT will be charged at 5% , 2.5% and 1.5% for 1st year , 2nd year and 3rd year respectively.
There are mixed views on how this will impact the market. Some experts believe that increase in market value of the property should be followed by a decrease in the percentage of taxes .
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