Islamabad: The government is reportedly considering a significant reduction in tax rates for high-value property transactions as part of efforts to stimulate the real estate market. According to sources, the proposed changes would include a major cut in taxes on properties valued over Rs100 million, alongside a reduction in advance tax for tax filers from the current 4% to just 0.5%.
The Federal Board of Revenue (FBR) has already started working on the proposals for these tax cuts, which are expected to boost investment in the property sector and encourage economic activity. The Prime Minister has directed relevant authorities to expedite the process, underscoring the need for a more favorable environment for property transactions.
Before finalizing the tax cuts, the government plans to consult with the International Monetary Fund (IMF) to ensure the proposed changes align with broader fiscal objectives. If implemented, the tax reductions are expected to provide relief to both buyers and sellers, particularly in the high-value property segment.
Meanwhile, the Senate Standing Committee on Finance Sub-Committee held a meeting where FBR Chairman Rashid Mahmood Langrial outlined measures to curb black money flow in the real estate sector. One of the key decisions discussed was the ban on purchasing properties worth more than Rs10 million with undeclared income. Langrial emphasized that while over 97% of property transactions in Pakistan are under Rs10 million, the focus would be on the 2.5% of high-value transactions.
The government’s focus on reducing taxes for high-value properties comes as part of its ongoing efforts to make the real estate market more transparent and to curb the use of undeclared wealth in property transactions.
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.
