Beverages, tobacco and real estate sector: FBR proposes reduction in tax rates

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed reduction in tax rates on beverages, tobacco and real estate sector to increase volumes and transactions in these sectors to generate additional revenue of Rs90-100 billion during April-June (2024-25).

Sources told Business Recorder that the FBR’s rationale behind reduction in tax rates for three sectors is to increase volumes of sales in beverage and tobacco sectors.

At the same time, the increase in transactions of buying and selling of immovable properties would also generate additional revenue during the remaining period of 2024-25.

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The accumulative impact of these proposals is between Rs90-100 billion for the remaining months of the current fiscal year.

In case of tobacco and beverages, the proposal is to reduce the rates of Federal Excise Duty.

The withholding taxes are proposed to be reduced on buying and selling of immovable properties.

The FBR has also discussed these proposals with the International Monetary Fund (IMF) mission during ongoing meetings with the mission. So far, no final decision has been taken on these proposals, officials added.

Copyright Business Recorder, 2025