AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

LAHORE: Former chairman of district council Narowal has approached the Lahore High Court against a recent legislation levying income tax on “deemed rental income” of properties.

The petitioner, Ahmad Iqbal Chaudhry, has argued that it is a property tax, which represents the single most important source of revenue of local governments all over the world.

He pleaded that although the tax levied under newly inserted section 7E of the Income Tax Ordinance, 2001 has been cleverly disguised by the Federal Board of Revenue (FBR) as an “income tax”, which is not a tax on income.

He said the new law mandated that every property which is not in the use of the owner, will be “deemed” by the FBR as a bearing a rent equivalent to 5 per cent of the total market value to the property.

In simple, every property owner would have to pay a tax equivalent to 1 per cent of the market value of his property to the federal government, he added.

This is the first time that the FBR has intruded into the domain of property taxes.

He argued that the federal government took the step only to gruel the revenues rightfully belong to local governments.

He therefore asked the court to set aside the law in question after declaring the impugned provision of the law as illegal and unconstitutional.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Tariq Qurashi Nov 16, 2022 10:49am
This law will hit many middle class people who have put their savings in plots, which actually have no rental income.
thumb_up Recommended (0)
... Nov 18, 2022 02:55am
@Tariq Qurashi, kindly read the law first
thumb_up Recommended (0)