Punjab Government Reduces CVT and Stamp Duty on Property Transactions

The Government of Punjab has recently announced to reduce Capital Value Tax and Stamp Duty on transfers of immovable properties lying in its jurisdiction. Work in the construction and real estate sector begins, but all the other industries and markets are closed. So, keeping in view the prevailing economic situations of the country, the federal government of Pakistan has taken this decision.

According to the decision, Stamp Duty and CVT on all immovable property transfers have been reduced to 2%. Earlier, these taxes amounted to 5% of the property value, i.e., DC value or FBR Value. CVT rate was 2%, and Stamp Duty was 3%, so a total of 5% tax was charged from the purchaser at the time of transfer.

Moreover, the government has also announced a comprehensive tax relief package worth 18 billion rupees to support the economy. But it is important to mention here that these tax amendments and relief are meant for a certain period. It is expected that the government will further make some changes after the normal business activities resume.

Several tax cuts, as well as exemptions, have been announced under the relief package. These tax cuts and amendments are made to facilitate different businesses, mostly online shopping, online merchant, construction, real estate, hospital, and medical services.

Steps taken under Tax Relief Package

GST on all online platforms is zero percent now

Deferment of urban immovable property tax and infrastructure development cess

Reduction of the tax rate of CVT and stamp duty to 2% for property transactions

Businesses and services related to HR development rated at Zero now (also includes businesses that are closed to reduce the cost of resuming activity

Suspension of GST on services provided by hospitals and medical consultants

Suspension of GST on construction services

Check out our site for more detail. Latest News

Stay Updated with Universal Property Network!