Islamabad: The Federal Board of Revenue (FBR) has imposed a fixed tax on builders while categorising them into three categories on the basis of cities.
According to a news source, Karachi, Lahore, and Islamabad have been classified into Category A. Commercial buildings in these cities will be charged with a fixed tax of PKR 210 per ft2. Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad, and Quetta have been classified into Category B and all other cities have been classified into Category C.
Residential complexes, measuring up to 750 ft2 in Category A will be charged a fixed tax of PKR 20 per ft2. In Category B, the tax rate will be PKR 15 per ft2, and in Category C, builders will have to pay a tax of PKR 10 per ft2. Owners of residential complexes measuring 751 to 1500 ft2 will be charged PKR 40 per ft2, PKR 35 per ft2, PKR 30 per ft2 for Categories A, B, and C respectively.
Similarly, residential buildings spanning more than 1,501 ft2 will be charged PKR 70 per ft2, PKR 55 per ft2, and PKR 35 per ft2 for Categories A, B, and C respectively.
The news source further reported that the tax may also be imposed on real estate developers in the future.