Govt revises duty on property transaction in the capital

The new rates will be applicable from the new financial year

ISLAMABAD: The federal government has revised upwards the charges on legal documents of every kind, especially with regards to registration of immovable property, in the Islamabad Capital Territory from the next fiscal year.

For this purpose, the amendments in Stamp Act 1899 through the finance bill 2019 have also been completed.

According to the budget documents, a new rate for stamp duty will be applicable from the beginning of the next fiscal year on July 1.

Stamp duty of Re1 has been imposed on property documents on stamp papers of a value of less than Rs2,000. However, on stamp papers of more than Rs2,000, a duty of Rs10  has been imposed.

Similarly, stamp duty worth Rs2 will be charged on any document less than Rs10,000 while Rs5 will be charged for documents valued more than Rs.10,000.

A stamp duty on an administration bond worth more than Rs1,000 will be Rs100. Moreover, Rs100 will be the duty for mutation of deed and Rs50 for oaths.

However, employees of the Pakistan Army will be exempt from any duty. The duty will not be imposed on any documentation pertaining to the pension or any charitable work.

Further, stamp duty from Rs2-Rs50 has been proposed for memorandums of agreement regarding the bill of exchange.

Stamp duty of Rs100 for valuation and apprentice deeds has been recommended. Stamp duty on articles of association of company having a share value of Rs2,500 will be Rs50 while stamp duty of Rs100 has been proposed for companies with share values which are more than Rs2,500 but are less than Rs0.1 million.

Similarly, the stamp duty for share values between Rs.0.1-1 million would be Rs200 while Rs500 has been proposed for share values of more than Rs1 million.

Further, the articles of association with a non-profit base and registered under section 42 would be exempt from any duty.

Similarly, stamp duty on local tickets will be Rs50 while Rs250 will be imposed on an international ticket.

It has also been recommended to impose a stamp duty of Rs15 on bonds, Rs50 on certificates and charter party, Rs100 for the composition of deed and customs bonds and Rs10 on duplicate documents.

A stamp duty of Rs100 will be imposed on divorce documents, Rs10 on the letter of allotment of shares and Rs50 on the letter of licence has been proposed.

Moreover, a stamp duty of Rs100-Rs200 on a memorandum of association of company have been recommended while non-profit companies and association registered under section 42 will be exempt from stamp duty.

Further, partnership documents with capital less than Rs500 will have to pay a stamp duty of Rs200 while Rs100 will have to be paid in any other case.

According to the finance bill, a stamp duty of Rs3-Rs5 is also being imposed on a single insurance policy while it would also be imposed on every single part of duplicate.

Stamp duties of Rs5-Rs8 have been proposed for fire insurance, Rs3 for accident or illness and indemnity insurance, Rs500-Rs1,000 for power of attorney would be imposed.

Similarly, a stamp duty of equivalent to 0.02 per cent of the payable amount on every demand excluding commercial paper would be imposed however the maximum limit for stamp duty in this regard will be Rs0.1 million.

A stamp duty of Rs10 on protest of bill and protest of note, Rs5 on the proxy, Re1-Rs5 on receipts, Rs30-Rs100 on reconvenes on the mortgaged property and Rs1,000 on re-leasing.

Stamp duty on respondentia bond would be in accordance with the duty listed on the bond.

Moreover, a stamp duty of Rs30-Rs100 for security and marketing bond and two per cent on property value after the settlement is recommended in the bill.

A stamp duty of Rs5 on shipping order, Rs100 on surrender of the lease, 0.1 per cent of instrument value on transfer, Rs200 on trust declaration, Rs5 on warrants for items have been proposed in the finance bill.

 

Published in The Express Tribune, June 17^th, 2019.