The government is poised to eliminate the Federal Excise Duty (FED) on property transactions following Prime Minister Shehbaz Sharif’s approval of a summary presented to the federal cabinet.
It should be noted that PM’s task force on the housing sector had earlier recommended scrapping the 3% FED. This decision is expected to boost activity in the real estate sector and provide relief to buyers across the board.
In a statement to the press on Wednesday, the chairman of the Federal Board of Revenue (FBR) confirmed that a proposal to remove property purchase taxes had been submitted.
The changes will be implemented once they receive formal approval from the cabinet.
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The chairman highlighted the comprehensive nature of the reform, which will eliminate the 3% FED for regular filers, 5% for late filers, and 7% for non-filers.
This tax relief will apply across the board, with no price limits on property transactions.
