Property Taxes and Estate Agent

Letter to the Editor

Property Tax is levied and collection under Sindh Urban Immovable Property Tax Act, 1958 and Pakistan finance act 2017, according to these acts a uniform rate of tax is levied on all categories of properties @ 25% of annual rental value (ARV). The taxes such as Capital Gain Tax, (CGT), Capital Value Tax (CVT), Stamp Duty, Withholding Tax or Advance Tax have to pay the Purchaser and Seller of the property, whether it is Residential, Industrial or commercial nature of property. The dilemma is not over here the Purchaser and Seller of the property would also bear Registration Fees and 2 per cent commission to the Estate Agents. It looks great for the State National Exchequer gets a huge amount of taxation in this context from the Seller and Purchaser.  

In this whole process one clever person “the Estate Agent” clearly gets away who never pays a single penny to the government evading millions of Rupees taxes, while getting millions in the phase of commission from the both parties. I strongly request to the authorities concerned to get them under a legislation and bring them in the immediate taxes for the betterment of country’s economy.  

Syed Sadaqat Hussain



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