Islamabad: The contribution of the real estate sector to the national exchequer was PKR 23.8 billion, 0.1% of the GDP for the fiscal year 2017-2018, as per a news report. This includes the tax collection under the amnesty scheme introduced earlier this year.
During this time, the Federal Board of Revenue (FBR) collected PKR 5.2 billion in taxes on sale and transfer of properties; 14% higher than that collected during previous year. On the other hand, PKR 13.2 billion were gathered by tax regulators as withholding taxes on the acquisition of properties. Another PKR 4.4 billion were collected by levying a 3% differential between the FBR’s computed property rates and deputy collectors’ rates.
At the moment, there are three types of tax rates for the real estate sector; actual market value, rate computed by the FBR and provincial deputy collectors’ rates. The FBR was able to collect PKR 232.7 million from the developers and builders, but this was still lower than expected.
