Govt. Plans to Implement Heavy Tax on Sale-Purchase of Society Files & Property
In the latest news, the government of Pakistan announced its plans to implement a heavy tax on society files and property. Government plans to induce this news tax on society files and property in the upcoming budget for the fiscal year 2023-2024. The main goal of this step will be to increase the tax on non-filers so that maximum numbers of citizens register themselves as a filer. Furthermore, the tax on immovable properties will also be increased in the upcoming budget.
According to the details, registered dealers avoid paying the withholding tax during the sales and purchases of property files. It will ensure the payment of taxes while trading private housing society files. Furthermore, law reforms will be introduced to ensure the implementation of tax on society files and property.
The government has already increased the tax rate on the sale and purchase of property from 100% to 250%, this increment has been done in the light of Income Tax Ordinance tenth Schedule, rule 1. Furthermore, FBR has also announced to improve the rates of immovable properties. For this purpose, the property valuation tables are being updated in light of FBR’s guidance.
This decision has sparked discussions and debates among investors, real estate agents, and the general public. The proposed tax aims to generate additional revenue for the government and regulate the real estate market. However, it has raised concerns and uncertainties within the industry.
It remains to be seen how the implementation of this tax will be implemented and what specific measures and exemptions may be introduced to address the concerns of people related to real estate. As the industry adapts to these changes, it is advised for individuals to stay informed, seek professional advice, and evaluate the impact on their investment decisions accordingly.
Stay tuned to Manahil Estate for more updates!
