Print Print 2024-05-17

Immovable properties: Hike in advance tax on purchase likely

  • Taxation on real estate discussed during ongoing meetings between FBR and IMF
Published May 17, 2024

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

Comments

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Ch K A Nye May 17, 2024 07:15am
Why isn't it possible to legislate that the State has the right to buy any property at the value plus 10% that the Buyers and Sellers declare when transacting and transferring the property?
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Ali May 17, 2024 08:00am
Keep increasing taxes but it won’t increase revenue.
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NotSurprised May 17, 2024 12:23pm
WHY is NON filer even allowed? Does any other country permit non-filers? No. This is because the corrupt bureaucrats/smugglers/feudals/property dealers all own this country. Rest of us pay them rent.
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Aamir May 17, 2024 01:16pm
This is fine to increase on non filers but idiotic imaginary taxes like 7E and deemed incomes are totally unfair. That will just ensure flight of real estate capital to Dubai and abroad
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Syed Farrukh Hussain May 17, 2024 01:43pm
Well was anything left out
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Hammad May 18, 2024 12:17pm
11 billion dollars parked Dubai real estate. This money should stay in Pakistan, which will definitely help in collecting more taxes through property transactions. Now adding more taxes will not help.
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