ISLAMABAD: Non-filers of taxes may soon face higher taxes on buying and selling immovable property in Pakistan as the federal government considers new measures to increase revenue.
Sources familiar with the matter disclosed that the Federal Board of Revenue (FBR), under “Pakistan Raises Revenue Project” (PRRP) with World Bank assistance, is seeking to align the valuation of real estate assets between the FBR and the provincial governments/districts.
The FBR has proposed to enhance the tax rate on property purchases for non-filers to encourage more property owners to pay taxes and broaden the tax base.
Currently, non-taxpayers are charged a tax rate of up to 250 percent on property purchases, up from 100 percent in the previous fiscal year.
The FBR is also targeting registered property agents involved in business transactions to ensure tax compliance.
Moreover, the FBR will issue updated valuations of real estate properties across Pakistan from July 1, 2023, as it updates valuation tables in consultation with the provincial authorities.
To implement the new measures, the FBR has requested the Board of Revenues’ senior members in Sindh, Balochistan, Punjab, Khyber-Pakhtunkhwa, and Gilgit-Baltistan to nominate representatives for consultation with teams established by the chief commissioners of Regional Tax Offices.
The move aims to align the valuation of immovable property for tax purposes, ensuring tax equity and fairness in the sector.
Source: Profit
