Advertisement
News

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

Senior Russian General Killed in Car Bomb Near Moscow

A senior Russian military official, Major General Yaroslav Moskalik, was killed on Friday in a…

3 days ago

LUMS Launches CeDAR to Drive Blockchain and Web 3.0 Innovation in Pakistan

The Center for Digital Assets Research (CeDAR) at LUMS was officially launched on April 24,…

3 days ago

IPAK Group Posts Strong Q3 Results

International Packaging Films Limited (IPAK) Group has recorded 66% increase in its revenues for the…

3 days ago

AKU, Local and Global Partners Launch Landmark Malaria Elimination Project in Thatta

The Aga Khan University (AKU) marked World Malaria Day with the launch of the Thatta…

3 days ago

Stanford Scientists Unveil Solar Panels That Work at Night

Researchers at Stanford University have unveiled a breakthrough in solar technology: a new type of…

3 days ago

NDMA Warns of Severe Weather Across Pakistan, PMD Issues Heatwave Alert Ahead of May Storm System

The National Disaster Management Authority (NDMA) has warned of unstable weather conditions across several parts…

3 days ago