Islamabad: The Pakistan Government has recently proposed a 5% federal excise duty (FED) on the sale and purchase of new plots; including both residential and commercial properties, as reported by a recently published news article.
According to the details, this measure, introduced by Finance Minister Muhammad Aurangzeb during his budget speech on Wednesday, aims to curb speculation and stabilise the real estate market. The government is also considering a gradual increase in the withholding tax rate for the sale and purchase of immovable property, depending on the investment amount. This move is part of broader efforts to regulate the real estate sector and ensure transparency in transactions.
To further this goal, the government announced several initiatives, including the digitisation of E-Registry and property transfer services. A QR code payment mechanism will be introduced at cattle markets to prevent tax evasion.
In addition, new taxes on non-filers are proposed in the upcoming budget to encourage tax compliance and deter illegal transactions. These measures are designed to enhance transparency and curb fraudulent practices in the real estate market.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
