The Federal Board of Revenue (FBR) collected Rs. 169 billion in Withholding Tax (WHT) on property sales and purchases in the first nine months (July-March) of FY2024-25, up from Rs. 136 billion in the same period last year.
This marks a 24 percent increase, despite a 15 percent drop in transactions, reported a news daily.
Tax rates on property transactions were raised in FY2024-25, with the WHT on sales increasing from 2 percent for filers and 4 percent for non-filers in 2023 to 3 percent for filers and 6 percent for non-filers. On purchases, the rate increased from 2 percent for filers and 7.5 percent for non-filers to 3 percent for filers and 10.5 percent for non-filers.
The government is considering abolishing the Federal Excise Duty (FED) on property, which contributed less than Rs. 2 billion this fiscal year.
The salaried class has paid Rs. 370 billion in taxes so far this year, which is more than the property and export sectors.