Punjab govt urges FBR to roll back CGT, withholding tax





Islamabad: The imposition of the Capital Gain Tax (CGT) on immovable property has become a serious concern for provinces, according to a news source. The provinces believe that a higher percentage of CGT is main cause behind a reduction in the provincial revenue collected in the form of stamp duty and Capital Value Tax (CVT).
According to details, the Punjab government penned a letter to the FBR, demanding that the authority roll back withholding tax collected under CGT, as it is against the law for the federation to collect this tax. The Punjab government has informed the FBR that the provincial revenue collected from the real estate sector has been affected because of the increased withholding tax and the new CGT collection regime. Reportedly, the new tax collection regime is the reason why the property transaction volume has dropped.
Through this letter, the FBR has also been informed that the revenue collected from the property market has been continuously declining for the last several years, which has in turn adversely impacted Punjab government’s financial resources.
The letter further reads that the Punjab chief minister has already requested the finance minister to reduce the CGT.


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