Pakistan Plans to Increase Tax Revenue from the Real Estate Sector in Budget 2024,2025
In Islamabad, Pakistan Plans to Increase Tax Revenue from the Real Estate Sector in Budget 2024,2025. They will announce this plan today.
The government led by the Pakistan Muslim League-Nawaz (PML-N) will introduce its first budget aimed at promoting growth for the fiscal year 2024-25. They plan to spend over Rs 18 trillion in this budget.
In this budget, the government has proposed a plan to collect taxes from the real estate sector. They have divided it into three categories, or “slabs”.
If someone who is registered as a taxpayer (also known as a “filer”) buys a property worth Rs 50 million, they will have to pay a tax of 3 percent on the property’s value. However, if someone who is not registered as a taxpayer (a “non-filer”) buys the same property, they will have to pay a higher tax rate of 6 percent.
This means that the government is trying to encourage people to become taxpayers by offering a lower tax rate for those who are already registered. It’s a way to increase tax revenue and encourage people to contribute to the country’s economy.
For properties valued between Rs 50 million to Rs 100 million, taxpayers (filers) will pay a tax rate of 4 percent, while non-taxpayers (non-filers) will pay a higher rate of 12 percent.
In the third category, if a non-taxpayer (non-filer) buys or sells a property worth over Rs 100 million, they will be charged a tax rate of 5 percent. However, if a taxpayer (filer) is involved in the transaction, they will pay a lower tax rate of 15 percent.
These tax rates are set by the government to encourage people to register as taxpayers. It also aims to generate revenue for the government while ensuring fairness in the tax system.
