New property taxes imposed as part of Punjab Budget 2013-14 have been criticized at large where some believe it could slow down the property market of Pakistan.
Online PR News – 15-July-2013 – Lahore, Punjab – Many estate agents and realtors believe that the Budget 2013-14 will negatively affect the growth of real estate sector and discourage the sale and purchase activity that was witnessed throughout 2012 as well as in the beginning of 2013. There are valid reasons for the agents to think this way because almost every sub-sector of the property market, be it commercial/residential plots or houses, is burdened with more taxes as proposed by the Punjab Budget 2013-14. Several agents believe that these new taxes will slow down the construction sector and discourage investors and buyers from investing in the property sector.
It is a fact that most of the real estate investors like to invest in bigger properties and imposing tax on the luxury property means cutting on their profit share. This was the most logical approach to increase the tax net in the country and many economists appreciate the fact that for the first time in the history of Pakistan the rich and elite class is targeted in the budget. On the other hand, some analysts criticize the government for targeting the realty market which only started to bloom. These analysts are of the opinion that property sales tax of 5% will entice the seller to hold his selling decision in order to avoid the tax that he believes will not be spent on the people of Pakistan.
The market experts at Zameen.com are of the view that although the real estate market will get the thuds and thumps from the budget 2013-14 but these effects will only be short-lived. Zameen.com, as the most widely visited and well trusted property portal of Pakistan carefully prepares the market reports which are based on thorough research and consultation with the industry experts. Based on the market survey and prevailing trends, experts at Zameen.com have reached the conclusion that the real estate sector of Pakistan will momentarily face the depreciating effects of the budget 2013-14 and will walk out of it soon and unharmed.
You can read the full report at: New property taxes won’t hamper the growth of Pakistan’s realty sector, reports Zameen.com
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