FBR Submits Its Summary to Federal Gov for Reducing Property Taxes

FBR has sent its summary to the federal cabinet to withdraw exercise duty for properties for everyone, and the recommendations are likely to be approved by the federal cabinet and the prime minister of Pakistan. FBR asked to completely wipe off federal excise duty for the properties purchased or sold for everyone. 

For example, right now a filer pays 3% FED on property while purchasing and 5% on non-filer for purchasing properties. These taxes would be withdrawn if the federal government accepted FBR recommendations to improve tax collection and kickstart much-needed property sales and purchases.

During an informal conversation with media representatives, FBR Chairman Rashid Mahmood Langrial confirmed that the summary proposing the end of FED on property transactions has been forwarded to the cabinet. Once approved, the decision will be implemented immediately. Claimed by ProPakistani Website

Moreover, real estate development has always dominated Pakistan's economy for both the formal and informal sectors in one way or another. Additionally, it has always been the backbone of Pakistan's economy. It is noteworthy that real estate development, sale, and purchase have always boosted taxes for the FBR and the government of Pakistan.

It is reported that the government is likely to accept the government task force on housing sector advice and their suggestions. The government will reserve and roll over FED taxes on properties to boost the economy and to increase taxes, as it seems that increasing taxes on property did not help the government, and, in fact, it reduced the property transfer/sale and purchase, which used to generate taxes for the government and help the government in recent years cover the tax shortfall of the FBR.