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 Enters Top 100 of Global Passport Index, Eyes Further Gains with Digital Upgrades

Pakistan’s passport has made a notable leap in global mobility rankings, entering the top 100…

20 hours ago

International Survey Reveals Pakistanis Support Actions to Address Climate Change

An international survey conducted across 17 total countries, including Pakistan, was commissioned by the Global…

20 hours ago

Pakistan’s first AI data center launched

Data Vault Pakistan has officially launched the country’s first AI-focused data center in Karachi, a…

21 hours ago

Trade Development Authority of Pakistan to Represent Country at Ambiente Frankfurt 2026

Ambiente Frankfurt 2026, the world’s leading international trade fair for consumer goods, is set to…

21 hours ago

LuckyOne Mall Launches SIMT: A Career Counseling Initiative Honoring Pakistan’s Unsung Heroes

In a powerful demonstration of purpose-driven leadership, LuckyOne Mall—one of Pakistan’s premier lifestyle destinations—has unveiled…

21 hours ago

Over 7 million streaming accounts’ credentials were leaked in 2024: Kaspersky Report

In a new report, Kaspersky identified over 7 million compromised accounts belonging to streaming services…

21 hours ago