ISLAMABAD – The federal government has decided to abolish the Federal Excise Duty (FED) on real estate transactions.
In July 2024, the government had introduced 3% FED for filers and 5% for non-filers and it was applicable applicable on the first-time sale of any plot. However, it is now being revoked after the period of ten months.
Federal Board of Revenue (FBR) officials told local media that the decision has been taken in consultation with the International Monetary Fund (IMF).
The top tax authority has sent a summary to Prime Minister Shehbaz Sharif for approval. The FED would be withdrawn as soon as the summary is approved by the government.
FBR spokesperson Dr. Najeeb Memon stated that legislation to abolish the FED will be undertaken soon, adding that Finance Minister Muhammad Aurangzeb has approved the summary, which will now be presented to the cabinet in coming days.
Additionally, the government had previously imposed a 10% income surcharge on annual incomes exceeding Rs 10 million, but reports suggest that it may also be withdrawn in the upcoming fiscal year.
Reports further revealed that the government is considering ways to reduce the tax burden on salaried individuals, although all such decisions will depend on IMF’s approval.
