Islamabad: The Pakistani government is intensifying efforts to increase revenue by targeting non-filers, with plans to raise the advance tax on the purchase of immovable properties for this group, reported a news source on May 18.
According to a new agreement between the Federal Board of Revenue (FBR) and the International Monetary Fund (IMF), the withholding tax on property purchases will be increased for non-filers.
Upon legislative approval, the FBR could potentially collect over Rs100 billion in the next fiscal year. This move aims to discourage tax non-compliance and enhance revenue from the real estate sector.
Property Value
Tax Rate for Filers
Tax Rate for Non-Filers
Up to 50 million
3 percent
6-7 percent
50-100 million
4 percent
12 percent
Over 100 million
5 percent
15 percent
As Pakistan seeks new loans from the IMF, the lender is urging the government to tap into untapped segments to broaden the tax base. The government has also committed to implementing structural reforms, including blocking the mobile SIM cards of non-filers.
Currently, tax authorities impose a 3 percent levy on filers and a 10.5 percent tax on non-filers, aiming to collect Rs80 billion in revenue this fiscal year. The IMF is now recommending an increase in the advance tax rate for non-filers.
