Higher CVT means higher property prices

Property prices have witnessed an increase of 25 to 40 percent in all seven tehsils and cantonment areas of Rawalpindi due to newly implemented taxes. Taxes and fee have been imposed even on inherited property increasing the prices tenfold. Capital Value Tax (CVT) has been slapped on all vacant plots at a rate of Rs 100 per square foot, while constructed houses have to bear a rate of Rs 10 per square foot. One percent corporation fee, one percent registration fee and stamp duty will be charged on the total cost of the property which is sure to put off potential property customers. The citizens will have to pay Rs 80,000 on the purchase of a single storey house of three marlas against the previously new tax rates have come in force with immediate effect. The citizens have protested against the new tax rates claiming them as nothing more than the exploitation of the masses. Property dealers and clients have demanded the government to immediately withdraw the new tax rates. The Rawalpindi District Bar secretary has termed the increase in taxes illegal and announced to challenge it in the court of law.Source: http://www.pakistantoday.com.pk/2013/07/11/city/islamabad/higher-cvt-means-higher-property-prices/