New Property Tax Rates Announced with Key Changes for Active and Late Filers

The Board of Revenue’s Registration Branch has officially notified new property tax rates, marking the resumption of the online property registration system after a three-week hiatus. The updated tax structure includes notable increases, particularly in capital gains tax for properties based on the DC rate value.

For properties valued up to Rs50 million, active filers will now face a 4.5% capital gains tax, up from the previous 3%. Late filers will pay a higher rate of 7.5%, compared to 6% before, while non-filers will incur an 11.5% tax.

For properties valued between Rs50 million and Rs100 million, the tax rate will be 5% for active filers and 8.5% for late filers. For properties exceeding Rs100 million, the tax rate is set at 5.5%.

In addition to capital gains tax, the advance tax for property buyers has also been revised. For properties valued up to Rs50 million, active filers will now benefit from a reduced tax rate of 1.5%, down from the previous 3%. Late filers will be charged 4.5%, reduced from 6%, and non-filers will face a 10.5% tax.

For properties worth between Rs50 million and Rs100 million, active filers will pay 2%, late filers will be taxed at 5.5%, and non-filers will incur a significant charge of 14.5%. For properties exceeding Rs100 million, active filers will pay 2.5%, while late filers will pay 5.5%.

The Board of Revenue’s decision to restart the online registration system ensures that property transactions can proceed smoothly with the new tax rates now in effect.