KARACHI, June 4: The Board of Revenue Sindh has proposed to increase stamp duty rates on bills of lading, a document issued by shipping companies, from Rs100 to Rs200.

However, there will be no change in the stamp duty rate on bills of entry which is Rs500 per document.

Suggesting changes in the schedule of Stamp Act, the BoR has sent the proposals to the finance department for

incorporation in the new budget.

The changes would become effective if these are approved by the Sindh Assembly and the cabinet, sources said.

In another major move, the BoR has changed the design of judicial and non-judicial stamp paper of different denominations after detection of printing of fake stamp papers in large number, circulating in the market.

The new stamp paper (separate for use in each province) will have serial numbers, like currency notes which would help authorities check fake official papers.

IG Stamps Ijaz Baloch said that it had also been proposed to enhance stamp duty rates from Rs20 per sq yards to Rs100 per sq yards on leases enacted by builders on behalf of their clients.

The BoR had reduced stamp duty rates from three to two per cent on property sale deeds about two years ago after introduction of new valuation table.

Apart from stamp duty, it charges one per cent sales deed value as transaction tax, two per cent Capital Value Tax, in addition to one per cent charged as town tax.

Estate agents have opposed stamp duty rates and said that it would adversely affect the real estate business.

Clifton and Defence Estate Agents Association suggested that houses up to 240 sq yards be exempted from CVT and tax be charged on sales of houses, measuring 400 sq yards and above. Plots up to 240 sq yards are exempted from CVT.

Association’s senior vice president Raja Mazhar said that an amnesty scheme be announced for ‘hidden properties’ and their owners be encouraged to declare their real estate assets after paying one per cent tax.

Amnesty schemes announced by the Federal Board of Revenue have been quite successful in legalising black money.

The Board of Revenue Sindh (BoR) collected Rs3.4 billion revenue during the first 10 months (July-April) of the current fiscal year against Rs3 billion during the same period last year.

The collection is Rs2.5 billion short of the annual target of Rs5.9 billion Commenting on the revenue performance, Chief Inspector of Stamps Ejaz Baloch said that high interest rates have affected the stamp duty revenue which has curtailed the loans and leading documents, a good source of revenue.