Luxury Tax on Farmhouses & Houses in ICT
The Federal Government of Pakistan is considering the option to impose Luxury Tax on farmhouses & deluxe houses located in Islamabad Capital Territory (ICT). Excise & Taxation Department will recover this Tax.
Luxury Tax on Farmhouses
According to details it is said that the tax will be calculated as PKR 25 to PKR 80 per Sq. Ft. for farmhouses. There will be no tax imposed on farmhouse that are less than 4 Kanal. PKR 25 will charged for per square foot if the farmhouses range between 5,000 Sq. Ft. and 7,000 Sq. Ft. in size. Meanwhile, if it lies in category of 7,001 & 10,000 Sq. Ft., PKR 40 will charged for each Sq. Ft. In addition, if the area exceed from 10,000 Sq. Ft., PKR 50 will be charged for each Sq. Ft.
Luxury Tax on Houses
Meanwhile, large houses ranging from size 2 Kanal to 4 Kanal will pay tax PKR 100,000. For the houses having area more than 4 Kanal will pat PKR 200,000.
If the property is owned by any widow, they are exempted from the tax. Currently, Government is looking in to this matter. If approved, this tax will be part of the national budget for FY 2020-21.