Islamabad: The real estate sector has urged the government to amend The Tax Laws (Amendment) Bill, 2024 to exempt property transactions up to PKR 50 million from source disclosure requirements. The recommendation was made during a meeting of the National Assembly Standing Committee on Finance’s sub-committee at the Federal Board of Revenue (FBR) headquarters on Monday.
FBR Chairman Rashid Mahmood Langrial highlighted the scale of undervaluation in the property sector, revealing that in 2023-24, nearly 93.7% of all real estate transactions in Pakistan were valued below PKR 5 million. He stated that the new tax bill would impact only 2.5% of property buyers, while 95% of households would remain unaffected.
The chairman further noted that a significant tax gap exists in high-value property transactions. Of the 1.695 million property deals recorded last year, only 3,250 transactions (0.2%) exceeded PKR 50 million. In contrast, 1.59 million transactions (93.7%) were below PKR 5 million.
Langrial reiterated the government’s stance that investors in the real estate sector must disclose their source of income. However, he assured that efforts are underway to reduce transaction taxes to stimulate the market while ensuring greater transparency and compliance.
The real estate sector continues to push for amendments, arguing that easing restrictions on property transactions would encourage investment and boost economic activity. The final decision on the proposed changes to the bill remains pending.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
