No Breakthrough in Real Estate Tax in Mondays Meeting
Representatives of Real estate associations from all over Pakistan met Government officials today to discuss the ongoing issue of increase of real estate tax in the Budget 2016-17 . It seems like there has been some positive development about the real estate tax in Pakistan. It is however unlikely that Government will back out completely. The Government has formulated a 13 members committee which will meet on Wednesday 20th July 2016 again. In a mass message to the real estate registered agents of DHA Lahore the information secretary has strongly advised not to believe in any rumors and wait till the things are finalized.
The agenda of these meetings is to find a win win situation for all effected Parties. It is clear though that the Government will not back out from its stance. They may reduce the tax rates or show some leniency in FMV (fair market value) assessment.
Some people have been spreading positive news about the meeting to create optimism in the market. However it is better to remain calm and wait for the final news.
The market has already gone in a correction mode . It is however safe to buy in developed phases however avoid non-developed phases such as 9 prism and phase 8 Ivy green.
For impact of these taxes read Impact of Property Tax on Real Estate