BACK in 2008, I had purchased a residential plot of land in phase I of Abuzer Ghaffari Cooperative Housing Society in Karachi situated in Sector 53-A, Scheme 33 within the administrative jurisdiction of Cantonment Board Malir (CBM).
As per the CBM rules, prior to getting a house constructed in phase I ofthe society, the land holder is required to get the lease deed executed before the subregistrar of Gadap Town. A few days ago, I went to the relevant office to inquire aboutthe expensestobeincurredinthis regard. I was told by the officials that asa non-filer, a gain tax at the rate of 12 per cent of the valuation table must be paid in addition to othertaxes and expenses.
As per this rate, a land holder owning a plot of166.67 square yardsisrequired to pay approximately Rs1.2 million on account of gain tax in addition to other taxes and expenses. This is far beyond the payment capacity of a middle class individual. I am at a loss to understand the logic behind imposing such a huge gain tax on the execution oflease deedbecause nothing is being gained by the land holder in financial terms.
Infact,as perthe practiceinvogue,the land owner is supposed to pay many other taxes and duties at the time of the execution of lease deed. The relevant authorities should look into this public issue seriously, and take necessary steps to abolish the imposition of unwarranted and unjustified gain tax on the registration and execution oflease deed.
