Immovable properties: Hike in advance tax on purchase likely

ISLAMABAD: The government is likely to raise advance tax on the purchase of immovable properties by non-filers in the coming budget (2023-24).

Sources told Business Recorder that the taxation of real estate was discussed during the ongoing meetings between the FBR and the International Monetary Fund (IMF) to increase advance withholding tax on non-filers for the purchase of immovable property.

The FBR has imposed three percent tax on filers and 10.5 percent tax on non-filers during the current fiscal year, and it collected nearly Rs80 billion during this year.

Immovable properties: FBR has no written SOP to determine fair market values

During the ongoing meetings, the IMF asked the FBR to increase advance tax on non-filers for the purchase of property.

Sources said that a three percent tax has been proposed on filers and six to seven percent tax on non-filers for the purchase of property upto Rs50 million.

Similarly, four percent tax on filers and 12 percent tax on non-filers has also been proposed for the purchase of property worth Rs50 million to Rs100 million.

Furthermore, five percent tax on filers and 15percent tax on non-filers has been proposed for purchase of property worth over Rs100 million.

Sources said that the FBR can collect over 100 billion if the parliament approved the proposed plan for the next fiscal year.

Copyright Business Recorder, 2024