Huge Reduction in Capital Gain Tax
What is Property Gain Tax?
The government of Pakistan presented the annual budget for the fiscal year 2021. There has been a significant reduction in the amount of money being charged as Capital Gain Tax. In order to understand this, we first have to know what capital gain tax really is. For example, I purchased a plot, say, back in 2018. Overtime, its monetary value kept on increasing and now I wish to sell it for profit. When this transaction will take place, the buying and selling parties will have to pay their respective taxes. This is basically the amount charged by the government as its share of the gain in your value of property. The government is imposing this tax on you because you’re a citizen of this country. And have you not been, there you wouldn’t have been able to get property and enjoy these profits. Thus you have to pay the government its due share.
Link with Real Estate & Construction Industry
Previously, the government would charge an incredibly high sum of money as capital gain tax. Hence, property trading had taken several blows these past few years. During the COVID-19 pandemic, real estate industry and the construction businesses witnessed a major boom in the economy. This was particularly because there are several businesses and employment opportunities attached to this line of work. 114 industries come together and supply their respective products and services whenever a home or plaza is to be built somewhere. In fact, both these enterprises are greatly responsible for getting our economy back on its feet.
Invest Now, Enjoy Your Profits Later!
As a result, doing so brought back work opportunities for many people who had ran out of work during the pandemic. Ultimately, this helped put back our economy onto its feet. This year, the government has decided that the government would charge even lesser taxes on property. Hence, this has motivated investors to flush out their money from the banks and invest them in real estate. If you’re looking to invest in something that your children will reap the benefits of, then I suggest you take some time out and visit our office at Lake City. Website link attached below, do check it out: –