Federal government to earn Rs. 70 billions from new tax
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ISLAMABAD (APP): Minister for Finance Muhamamd Ishaq Dar Sunday said the plots allotted to the dependents of martyrs would be exempted from Capital Gain Tax (CGT).
CGT would not be applied on the selling of plots allotted to the heirs of the martyrs for one time only, he said while addressing a press conference here.
The minister said 50 per cent tax would be reduced on the transaction of plots allotted to the government servants in lieu of service of Pakistan.
He said the President had approved Income Tax Amendment Ordinance Bill 2016 enforcing the package announced by the government on Saturday for valuation of fair market value of property immediately.
Ishaq Dar said the legislation to enact the money bill would require at least one month, therefore, the government had decided to implement it immediately through an ordinance". The normal process of legislation in this regard would be initiated in the upcoming Senate and National Assembly sessions, he added.
The minister also announced on the occasion that the President, on the advice of the Prime Minister, had also consented to lifting of Customs Act, 1969 imposed in Provincially Administered Tribal Areas (PATA).
The act would no more be applicable in Malakand Division and Kohistan District in 24 hours, he added.
He clarified that the Act was implemented in PATA on March 28, 2016 on the request of Khyber Pakhtunkhwa government and now on its request it was declared as non-functional.
"The KP government had sent a summary in May 2015 requesting that the Custom Act may be implemented in PATA which was duly approvedby the President. However, after strong reaction from the PATA people as they suffered a lot due to this act, the KP government again sent a summary in May, 2016 requesting to repeal it which has been approved by the President today", the minister added.
Replying to a question, Ishaq Dar said in the previous year, the government earned around Rs 8 billion revenue from the real estate sector which after legislation would likely to increase up to Rs 70 billion for the current fiscal year 2016-17.
He said no such steps could have been taken in the country's 70-year history before. The present government, however, managed to bring the reforms which would help bring transparency in the real estate sector, he added.
To another question, he said Pakistan Tehreek-i-Insaf Chairman Imran Khan should better focus on the genuine issues of the KP people instead of doing 'politics of agitation'.
He said the Chitral people were suffering from flash floods as dozens of them died and many houses damaged. The PTI Chairman should focus his attention towards that area, he added.
