Islamabad: The Senate Standing Committee on Finance and Revenue on Wednesday (June 15) turned down the Federal Board of Revenue’s (FBR) request to increase the advance tax on the sale and purchase of property from 1% to 2% for filers – as proposed in the budget 2022-23, news sources reported.
Reportedly, the committee has approved an increase in the advance tax on the sale and acquisition of real estate land from 2% to 5% for non-filers. Similarly, the committee suggested revisions to the Finance Bill 2022, suggesting that the government levy a 1% presumed income tax on plots valued at more than PKR 25 million after five years of land transfer without development. If the plot is not built within five periods, it will not be charged.
Similarly, the Senate panel proposed changes to the Capital Gains Tax (CGT) on the holding time, recommending that the holding duration of the plot should be decreased from 6 to 5 years and that the previous CGT slabs be reinstated.
It is important to note that the senate committee recommendation will be presented before the appropriate forums before making it part of the tax laws. The government has also set a tax target of PKR 7.2 trillion for the coming fiscal year.