ISLAMABAD: Non-filers will face additonal taxation on the sale and purchase of real estate plots, as the Federal Board of Revenue (FBR) has committed to integrating the real estate sector into the tax framework, as per assurances made to the International Monetary Fund (IMF).
Reports from ARY News indicate that the federal government intends to raise taxes on non-compliant individuals involved in plot transactions, while also instituting registration procedures for housing societies. To formalize the real estate sector, transitioning to electronic banking channels for transactions has been proposed, replacing traditional cash exchanges. All transactions, including plot acquisitions and sales within housing societies, will be meticulously recorded.
A comprehensive report on real estate taxation coordination between the federal and provincial authorities will be submitted to international lenders. Additionally, data pertaining to property agents and plot transactions will be cataloged within the Federal Board of Revenue (FBR).
It is claimed that forthcoming budgetary measures will aim to eradicate unrecorded transactions within the real estate sector. Furthermore, plans are underway to introduce taxes on property file transactions.
Presently, non-compliant individuals face a seven percent withholding tax and a four percent capital gains tax on plot transactions. However, evasion persists in property file transactions due to inadequate monitoring mechanisms.
Earlier discussions between the Federal Board of Revenue (FBR) and an International Monetary Fund (IMF) delegation during the second review of the $3 billion Standby Agreement (SBA) revealed Pakistan’s tax revenue strategy. The ongoing IMF delegation visit aims to assess progress under the SBA loan program.
The FBR shared its tax reform agenda with the IMF, outlining initiatives to bring 3.1 million retailers and defaulters into the tax net, thereby augmenting the country’s revenue. The delegation was briefed on structural FBR reforms, with hopes of achieving a tax collection target of Rs 9,415 billion.
According to FBR reports, the IMF’s target for July to December 2023 was surpassed, with Rs 4,468 billion collected against the set goal of Rs 4,425 billion.
