Islamabad: The federal government has proposed imposition of PKR 440 billion worth of new taxes the on real estate sector in the budget outlay presented for the fiscal year (FY) 2022-23, according to a news published on June 11.
As per the FBR suggestions, imposition of 5% tax on income of non-productive immovable as well as un-utilised commercial/residential/industrial plots and farmhouses has been proposed. People who have more than one immovable property priced above PKR 25 million and situated in Pakistan shall be deemed to get a rent equaling 5% of the fair market price of the immovable property, and will be liable to pay 1% of the fair market value of the said immovable property.
Moreover, changes in the tax on immovable properties’ transactions has been proposed. The capital gain on all classes of assets is now proposed to be taxed at 15% when the holding period of the property is less than or equal to one year.
The government is for increasing advance tax rate for filers on buying and selling property from 1% to 2%, while the same for non-filers is proposed to be 5%.
The budget also proposes that non-resident Pakistanis (NRPs) pay a 1% capital value tax on their foreign immovable properties as well as liquid foreign assets. It is estimated that with these measurements for NRPs, the government will collect PKR 18 billion.
As per Federal Board of Revenue (FBR) Chairman Asim Ahmad, the board has proposed PKR 440 billion worth of new taxes including; PKR 34 billion in terms of customs duties, PKR 90 billion in sales tax and federal excise duty (FED) and PKR 316 billion in income tax.
The chairman also revealed that FBR has proposed to offer tax relief worth PKR 85 billion for the masses in the next fiscal year, with an effect of PKR 355 billion. As per the Finance Bill, the government has proposed PKR 316 billion in new income tax measures for the next fiscal year 2022-23.