Real Estate Sector to Face Higher Taxation in Pakistan’s Budget 2024-25

News Desk3 weeks ago

With an expected expenditure of more over Rs18 trillion, the federal government led by the Pakistan Muslim League-Nawaz (PML-N) will unveil its first growth-oriented budget for the fiscal year 2024–25.

Proposals suggest that Pakistan intended to collect taxes from the real estate industry in three different levels.

Three percent of the purchase price of a property valued at Rs. 50 million will go toward taxes for filers, while six percent will go toward non-filers.

4 percent tax on properties worth up to Rs 100 million would be levied against filers and 12 percent tax on non-filers.

Third-slab non-filers who purchase or sell real estate worth more than Rs 100 million will be subject to a 5 percent tax penalty; otherwise, they will pay a 15 percent tax.

Finance Minister Muhammad Aurangzeb has received the budget 2024–25 suggestions from Pakistan’s real estate specialists.

Ahsan Malik, a real estate expert, claims that throughout the last two years, the industry has seen enormous losses. He issued a warning, saying that increasing real estate taxes will cause more foreign investment to leave Pakistan.

Read more: CM Maryam’s Vision: Making Homeownership a Reality with ‘Apni Chat Apna Ghar’

Malik recommended that in order to represent the true market worth of the property in the budget for 2024–2025, the Pakistani government lower DC rates by 33 percent.

He demands the removal of Section 236C’s 3% income tax on land sales.

Malik suggested that in the budget for the next fiscal year, the income tax on the sale of land and apartments under Section 236C be lowered to 1%.

Special tax concessions should be granted to widows who are non-filers when purchasing property.

Leave a Reply

Your email address will not be published.