The FBR will also charge zero percent sales tax on services provided by property developers and promoters (including allied services) relating to low-cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority or under Government's Ehsaas programme.
Zero per cent subject to the condition that no input tax adjustment or refund shall be admissible.
According to SRO 326(I)/2020, issued by the FBR, services provided by property dealers and realtors would now be subjected to zero percent sales tax under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
According to a chartered accountant firm, through the Amendment Ordinance, S7(1) of the Finance Act, 1989, capital value tax (CVT) imposed on certain assets through S7 of the Finance Act 1989, has been ceased to have any effect.
This means that the CVT is no more payable to the federal government.
However, the CVT as payable to provinces under the respective laws would continue to apply.
The rate of stamp duty applicable on transfer of immoveable property has been reduced to one percent against previous applicable rate of five percent.
The Stamp (Amendment) Ordinance, 2020 issued by Government of Punjab vide notification dated 20 April 2020.
The construction services have been subjected to Punjab Sales Tax at the rate of zero percent without input tax adjustment through amendment made in the Second Schedule of the Punjab Sales Tax on Services Act, 2012 vide Notification No SO(TAX)1-110/2020 dated 02 April 2020.
Further, all construction and allied services rendered in the Khyber-Pakhtunkhwa have been exempted from levy of by sales tax by the KPRA vide notification No 709-11 dated 07 April 2020.