MULTAN: The Punjab government has merged the registration fee and capital value tax (CVT) on the registration of the documents of property in stamp duty which has been implemented across the province, except Lahore, from Saturday.
According to notification No 3839-2017/1000ST(I), issued on June 22 by the settlement and consolidation secretary, Board of Revenue, the merger took place under the Punjab Finance Act of 2017 to be implemented from July 1.
The rate at which the CVT was being charged at two per cent stands merged in the existing rate of stamp duty of three per cent of the value of the property in registration of documents in urban areas plus registration fee.
According to the notification, the definition of the urban area has also been added to the stamp act - an area which is a rating area under the Punjab Urban Immovable Property Tax Act of 1958, the area already declared as an urban area under the Punjab Finance Act of 2010, any other area which the Board of Revenue of Punjab may, by notification, declare as an urban area and an area developed by a development authority, housing authority, statutory body, cooperative housing society or a real estate company or developer.
The notification issued to deputy commissioners/district collectors in the Punjab, except Lahore, directed them to instruct field officers/assistant directors of land record (ADLRs) that no mutation of transfer of immoveable property in urban areas, without registration, may be entered/attested by the revenue officers/ADLRs.
“These instructions may be implemented in letter and spirit. In case of violation, disciplinary action may be taken by the competent authority against the delinquent officer/officials,” reads the notification.
Earlier, the CVT was being charged within the limits of urban (inside municipal committee limits) or peri-urban areas but now it will be collected from all the developed areas even located in rural areas.
Sources said that the decision of merger was taken to streamline the process for taxpayers on the recommendations of Tax Policy member of the Board of Revenue Asad Ikram Mani who has a strong grip over the subject.
Up to Rs500 was being collected as registration fee in case the value of the property was up to Rs500,000 and if the value of the property was more than Rs500,000, the registration fee was Rs1,000. The registration fee will also be collected through e-stamp papers.
In 2016, the Punjab Board of Revenue had introduced e-stamp paper to control the bogus stamp papers and facilitate the citizens online.
Published in Dawn, July 2nd, 2017