ISLAMABAD – Pakistan’s federal government proposed implementing a 5 percent federal excise duty (FED) on new plots, as well as on residential and commercial properties.
This proposal was put forward by Finance Minister Muhammad Aurangzeb during his budget speech on Wednesday. Aurangzeb stated that the aim of this increase is to curb speculation and stabilize the real estate market.
Additionally, the government is contemplating a gradual increase in the withholding tax rate for the sale and purchase of immovable property based on the investment amount.
The government also implemented various measures to regulate the sale and purchase of plots to curb fraudulent practices and ensure transparency in real estate transactions.
The new measures include digitization of E-Registry and property transfer services, as well as the introduction of QR code payment mechanisms at cattle markets to prevent tax evasion. The government also announced new taxes on non-filers in the upcoming budget to encourage tax compliance and deter illegal transactions.
