Capital Gain Tax not applicable on sale of armed forces plots
Islamabad—Finance Minister Senator Ishaq Dar, Sunday, said that Customs Act 1969 to the Provincially Administered Tribal Areas (PATA) will be revoked within next 24 hours.
On advice of the Prime Minister the President of Pakistan has repealed the extension of Customs Act 1969 to PATA.
Federal Finance Minister Ishaq Dar on Sunday stated Capital Gain Tax (CGT) will not be applicable on sale of plots of land given to personnel of the armed forces.
“CGT will not be applicable on the sale of plots given to personnel of the armed forces,” said the finance minister while addressing a press conference.
The federal finance minister also stated CGT will not be applicable on the first sale of plots given to the dependents of armed forces personnel who have been killed in the line of duty.“When a plot of land is sold by the dependents of martyrs for the first time, CGT will not be applicable,” added Dar.
Previously the CGT was being charged as per the property evaluation table notified by the district collectors (DCs). The rates of property in the official evaluation table are usually 40pc-60pc lower than the actual market price.
Addressing a press conference here Finance Minister said that Chief Minister Khyber Pukhtunkhwa (KP) requested to extend Customs Act 1969 to PATA on May 15, 2015. Later, the KP government moved a summary for extension of Customs Act, 1969 to PATA in light of the recommendations of Apex Committee.
He added that the President of Pakistan approved the request and notification was done on 28th March 2016. The people of PATA protested so the SAFRON Ministry forwarded a summary moved by the KP government of 5th May 2016 which recommended that the President of Pakistan may approve repealing the extension of the Customs Act 1969 to PATA due to economic situation and poverty of the region. He observed that during the budget session of the parliament several parliamentarians from KP and FATA requested for the repeal of the Customs Act in the region and he promised in the budget session to place the matter before the Prime Minister on his return from abroad.
The minister also said that Terms of References (TOR) committee session was not possible on August 6. The session could be held on August 1 or 2, before noon, he will talk to Speaker to hold a session on August 8 or 9 otherwise. He said that Pakistan Tehreek-e-Insaf’s (PTI’s) rally on August 7 did not matter. He said that he suggested PTI to look for Khyber Pakhtunkhwa (KP) government including Chitral situation other than national politics.