Advertisement
Categories: BusinessNews

Government Mulls Increase in Advance Tax on Property Purchases in Upcoming Budget

Advertisement

According to reports, the government is poised to elevate the advance tax on immovable property purchases by non-filers in the forthcoming budget.

Reports revealed that discussions between the Federal Board of Revenue (FBR) and the International Monetary Fund (IMF) have centered on boosting the withholding tax on non-filers for property transactions.

The IMF’s presence in Pakistan coincides with negotiations for a new bailout package, as the country seeks a larger program to attain economic stability.

The government has pledged structural reforms and plans to deactivate mobile SIM cards of non-filers. However, the Islamabad High Court recently intervened, issuing a stay order on the government’s move until May 27.

Read: IMF Urges Pakistan to Raise General Sales Tax to 18%

The current tax regime imposes a three per cent levy on filers and a 10.5% tax on non-filers, generating nearly Rs80 billion in revenue this fiscal year.

The IMF has urged the FBR to further hike the advance tax rate for non-filers, proposing:

  • 3% tax for filers and 6-7% for non-filers on properties valued up to Rs50 million
  • 4% tax for filers and 12% for non-filers on properties priced between Rs50-100 million
  • 5% tax for filers and 15% for non-filers on properties exceeding Rs100 million

If endorsed by Parliament, these adjustments could enable the FBR to collect over Rs100 billion in the next fiscal year, aiming to deter non-compliance and boost tax revenues from the real estate sector.

Advertisement
News Desk

Recent Posts

Pakistan to Witness Nearly 7 Million Animal Sacrifices on Eid-ul-Adha

Pakistan is expected to witness the sacrifice of more than 6.97 million animals during Eid-ul-Adha…

2 days ago

US Tech Fund commits $10 million to 2 Pakistani IT entrepreneurs

Pakistan's two IT entrepreneurs-- Mehwish Salman Ali and Malik Mudassir—will receive funding of $10 million…

2 days ago

Spotify’s Fresh Finds Celebrates a Decade of Discovering Breakout Talent

Spotify has announced a major milestone for 2025 - 10 years of Fresh Finds, the…

2 days ago

Sindh Govt Bans Qingqi Rickshaws in Karachi, Imposes Heavy Fines Under New Traffic Reforms

Sindh’s Minister for Law and Home Affairs, Ziaul Hassan Lanjar, has approved sweeping changes to…

2 days ago

AKU LEADS with micro-credentials: A flexible programme for academic advancement, upskilling and reskilling

Today, the world is changing rapidly more so than ever before with disruptive technological development…

2 days ago

Aeon & Trisl Secures Emaar’s Top Broker Title for Q1 2025 – 7 Quarters in a Row

Aeon & Trisl Real Estate Group has once again claimed the coveted title of Emaar’s…

2 days ago