Land Allotments by Care Taker Govt in Sindh Canceled

CM cancels land allotted by caretaker govt

By Qazi Asif

KARACHI: Sindh Chief Minister Qaim Ali Shah has cancelled the allotment of land made by the caretaker set-up and formed a committee to review the allotments they made within the last six months.

The Secretary to the CM, Sohail Akbar Shah, in a letter to the Sindh chief secretary, written July 10, 2008, said, “I am directed to convey the orders of the honorable CM, Sindh. It has been desired that since all appointments made during the caretaker government were cancelled, similarly all allotment, disposal, sales, lease of lands given during the tenure of the government are hereby cancelled. No payment should be accepted even in pending cases from any individual, corporation, local authority and company.”

The caretaker government in Sindh which was meant to just hold free and fair elections allotted 2,155 acres of land to the City District Government Karachi (CDGK) for 17 different projects after the general elections. This allotment was made on March 18, 2008. This land was around the Northern Bypass in Deh Mahi Garhi, Mochko, Gundpass, Band Murad, Alkyani, Metha Ghar and Mohyo. This allotted land to the CDGK has also been canceled.

The CM said that the allotment made six months before the announcement of the schedule of the elections by the election commission will be reviewed as well.

The CM formed a review committee of Additional chief secretary development, additional chief secretary finance department, member land utilization board of revenue Sindh and a representative of trade and industry.

Sources in the Sindh government said that the caretaker government, after the general elections, also allotted land to industries. Thousand of acres were allotted to foreign and local entrepreneurs and companies. The Local Government Provincial Minister for Law, Ayaz Soomro, has said that land which was granted during the last government without following any rule or procedures will be canceled.

“We will make a new land grant policy for Sindh. A bill for the establishment of a Sindh Land Commission will be presented in the assembly soon. The commission will be headed by the CM,” said Soomro.

Land utilization member of the Sindh Board of Revenue, Subhan Memon, said that they have received enquiry orders for the land allotted in the last six months of the caretaker government’s tenure. “We will submit a report to the CM after a detailed review of the matter,” said Memon.

A meeting on this will be held within two or three days, he added.

New Taxes on Real Estate in Pakistan

CVT extension: The NA refused the tax authorities’ demand to extend the scope of capital value tax (CVT) on the purchase of immoveable property in rural areas.

The tax authorities wanted to extend the scope of the two percent CVT on the purchase of immoveable property in areas 40 kilometres from the outer limits of cantonment boards in Karachi and up to 40 kilometres from the notified, rated areas of the Karachi City District.

In Lahore and Faisalabad, it was proposed to extend the scope of CVT over areas 30km from the outer limits of the cantonment boards and the notified rated areas.

The scope of the two percent CVT in the rest of the cities was proposed to be extended to up to 10 kilometres from the outer limits of the cantonment boards and up to 10 kilometres from the notified rated areas.

However, the finance bill has authorised the Federal Board of Revenue (FBR) to extend the scope of two percent CVT in areas to be notified after fiscal year 2008-09.

According to another new clause inserted in the finance bill, the tax on services provided by property developers for the development or conversion of purchased or leased land into residential or commercial plots will be set at Rs 100 per square yard.

The tax will be set at Rs 50 per square foot of the covered area in case of the construction of residential or commercial units.

An amendment has also been made to the Finance Act, 1989, according to which a two percent CVT shall be levied when the general power of attorney is used to sell the mortgaged property or property offered as collateral for obtaining loan from a bank.

The WHT on rental income has also been revised. A five percent tax will be charged on rental income between Rs 150,000 and Rs 400,000. The tax will be charged on the amount exceeding Rs 150,000.