Real estate: a tax evasion haven

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Evading of stamp duty and capital value tax in millions is rampant in the real estate sector and the government is silent and seems helpless in hands of some dishonest officials, Pakistan Today has learnt. Real estate tycoons buy properties in millions and declare prices in a few hundred thousands while filling the registry deeds due to which the Punjab government suffers losses worth hundred thousands in stamp duty and the federal government also faces losses in capital value tax.
A glaring case was detected in Gujranwala when a property dealer disclosed that property tycoon Azam Bhutta, a resident of DC Road, Gujranwala purchased 20 kanals of land on the GT Road Gujranwala Cantt for Rs 120 million from Munir Ahmed, Zafar Mehmood, Azhar Mehmood Berni and Farrukh Mehmood Berni, residents of Model Town, Gujranwala. The registered deed executed on August 8, 2011 declared the land price at Rs 23,100 per marla and the total price of the land on which stamp duty and capital value tax was to be paid amounted to Rs 9.2 million but stamp duty and capital value tax were evaded.

3 COMMENTS

  1. The property that you purchase will mostly depend on the amount of money you can spend. Do an introspection of yourself and decide how much money can be spared by you. Get a credit rating to get an idea of the amount of money available to you.

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