Lahore – The Board of Revenue’s Registration Branch has officially resumed property registry operations after a three-week suspension, following the release of a gazette notification outlining revised property tax rates. The announcement has led to the restoration of the online property registration system, which had been halted pending tax reforms.
According to the new tax structure, capital gains tax (CGT) and advance tax rates on property transactions have seen notable adjustments, particularly targeting high-value deals and non-compliant taxpayers.
Revised Capital Gains Tax Rates:
-
Up to Rs50 million:
-
Active filers: 4.5% (previously 3%)
-
Late filers: 7.5% (previously 6%)
-
Non-filers: 11.5%
-
-
Rs50 million to Rs100 million:
-
Active filers: 5%
-
Late filers: 8.5%
-
-
Above Rs100 million:
-
All taxpayers: 5.5%
-
These increased rates are applicable on the DC (Deputy Commissioner) rate value of the property, not the market rate.
PSX Surges 1,100 Points as Buying Momentum Grips Market
Updated Advance Tax on Buyers:
-
Up to Rs50 million:
-
Active filers: 1.5% (down from 3%)
-
Late filers: 4.5% (down from 6%)
-
Non-filers: 10.5%
-
-
Rs50 million to Rs100 million:
-
Active filers: 2%
-
Late filers: 5.5%
-
Non-filers: 14.5%
-
-
Above Rs100 million:
-
Active filers: 2.5%
-
Late filers: 5.5%
-
This move aims to encourage tax compliance by offering reduced rates to active taxpayers while penalizing non-filers and late filers more heavily.
The decision to resume registry services has been welcomed by property dealers and legal consultants, as pending transactions can now proceed under the new taxation framework. It also restores a key digital service critical for ensuring transparency in the real estate sector.
Experts believe the revised rates may influence investment behavior in the property market, especially for high-end properties, while the reduction in advance tax could incentivize first-time and smaller investors.
