ISLAMABAD – Pakistani government is tightening the noose around the non-filers in bid to boost revenue and now the government is likely to raise advance tax on purchase of immovable properties by non-filers.
As per new understanding between Federal Board of Revenue (FBR) and the International Monetary Fund (IMF), the withholding tax on property purchases will be increased by non-filers.
Proposed Property Tax in Pakistan
After the approval from legislature, FBR could potentially collect over Rs100 billion in the next fiscal year. The aim is to discourage non-compliance and boost tax revenues from the real estate sector.
| Property Value | Tax Rate for Filers | Tax Rate for Non-Filers |
|---|---|---|
| Up to 50 million | 3 percent | 6-7percent |
| Between 50-100 million | 4 percent | 12percent |
| Over 100 million | 5 percent | 15percent |
Pakistan is seeking fresh loans from IMF while lender is pushing to touch untapped segments to broaden the tax base. The government further pledged to implement structural reforms, including blocking the mobile SIM cards of non-filers.
As of now, tax authorities imposed a 3percent levy on filers and a 10.5percet tax on non-filers, to garner Rs80 billion in revenue this fiscal year. IMF is now recommending government to increase the advance tax rate for non-filers.
Punjab Excise Dept to collect Property Tax on vacant plots after geo-tagging
