| Islamabad: The government has revised the tax structure on property sales to bolster revenue and ensure compliance, according to news sources. Reportedly, the latest development has caused the cumulative tax on property sales for non-filer buyers and sellers to reach an all-time high level of 18.5%.
Read: FBR shares details on updated Sales Tax, Federal Excise Acts
Effective from July 1, the taxes on buying and selling residential properties, plots, and houses have been revised upwards. Non-filer buyers are now obligated to pay a 10.5% tax, compared to the previous rate of 7%, on property purchases. On the other hand, property sellers who are non-filers will have to pay a 6% tax, instead of the previous 4%.
Read: Finance Bill 2023: Govt implements new tax requirements for property transfers
The increased tax rates encompass a 1% stamp duty and a 1% town tax, which are calculated based on the property’s value. According to Property Dealers Association Leader Imran Migrani, the filers involved in property deals will now be subject to a 3.3% advance tax, a notable increase from the previous 2.2%, which applies to both buyers and sellers. After this revision, the federal and provincial governments will be getting an 8% tax on property deals combined with 1% stamp duty and 1% town tax. |
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