THE recent increases in stamp duty, capital value tax and advance tax have left people reassessing their decisions as far as purchasingpropertyis concerned.

The Board of Revenue, Sindh, has been coercing people to pay more because it says it has to meet a target.

An acquaintance of mine has been facing a similar situation. He purchased a commercial plot measuring 200 sq yards in Phase H, PDOHA, Karachi, and built it after which he was to be granted a 99-year lease by the PDOHA, Karachi. For the purpose of stamping the lease document, he appeared before the Stamp Wing, Board of Revenue, Sindh, where he was told that the stamp duty was payable, considering the property was built up and not an open plot.

This, however, evidently increases the value ofthe property and thus also increases the amount of duties payable on it. His research helped him learn that there is an established principle of law regarding this matter and the Law Department had already given their opinion in 2004, Clause (ii) of Article 21 of the schedule to the Stamp Act 1899. It is mentioned (Revised Stamp Duty Schedule, September 2003 [brought up todate], compiled by Mr Muhammad Ismail Memon, ex-Deputy Chief Inspector of Stamps, Board of Revenue, that such documents of lease, executed by the PDOHA, Karachi, shall be charged for stamp duty as an open plot instead of being treated as built-up property.

Since then the Board of Revenue, Sindh, has been following the advice of the Law Department up to June 30, 2014, and an amount of Rs700 only was chargeable in these type of instruments.

But now they are demanding Rs873,900 as against Rs194,085, i.e. in excess by Rs679,815 on account of stamp duty, CVT and advance tax with effect from July 1, 2014.

These matters should be reviewed by the authorities concerned for `set targets`.

M. Hussain Memon Ex-District Registrar, Karachi Assistant Inspector-General of Registration, Sindh Karachi