In the federal budget 2013-2014, it was announced that more taxes were to be imposed on the construction sector in Pakistan. In addition to the rising cost of building and construction material, an additional tax of 0.5% on transfer of property will make property buying a rather difficult task for investors and general buyers in Pakistan.
The federal budget includes a postulate that imposes tax of Rs 50 on every square feet of under construction commercial property, while Rs. 100 on the constructed commercial units. If the same tax is imposed on the residential sector, tax of more than Rs. 200,000 would be due on 1 Kanal and almost the same on constructing a10-Marla double storey house.
