LAHORE, June 16: The Punjab government, in a major move to boost its own revenues, proposes to expand coverage of stamp duty to all forms of transfer of immovable property in the province.

The new tax proposal has been made in the Punjab Finance Act, 2008 tabled in the provincial assembly here on Monday along with the budget for the fiscal 2008-09 and would take effect on July one, if approved.

The proposal has been made to expand coverage of stamp duty to all forms of transfer of immovable property through sale, exchange, gift, or mortgage, as well as to transfer of right or interest from one person to another relating to an immovable property by a development authority, housing authority, statutory body, cooperative housing society, company or a developer/builder.

The rate of stamp duty has been fixed at two per cent of the value of the property – to be determined in accordance with the valuation table as notified by the Collector, or the average sale price of a property of similar nature in the same revenue estate or locality in the preceding year as may be determined by the Collector, if and where valuation table is not available.

A senior provincial finance department official explained later that broadening of the base of stamp duty on the new documents of consent decrees and transfer of right or interest relating to an immovable property would boost provincial revenues immensely. But he did not give the exact figure.

The finance bill also proposes to levy one time tax on luxury, imported motor cars of engine capacity of 2000CC and above but with a seating capacity not exceeding 10 (persons).

The owners of motor cars with an engine capacity of 2000CC to 3000CC would have to pay Rs200,000 per unit, and those with motor cars with an engine capacity of above 3,000CC would be required to pay Rs300,000 per unit.

The tax proposals also seek to enhance the rate of general sales tax by one per cent to 16 per cent in line with a federal decision and double the entertainment tax on horse-racing tickets to Rs100 per ticket.