ISLAMBAD: The Federal Government of Pakistan proposed to impose 5% Federal Excise Duty (FED) on new plots as well as residential and commercial properties, here on Wednesday.
As per the details, the proposal was presented by Finance Minister Muhammad Aurangzeb during his budget speech on Wednesday. Aurangzeb said the hike was aimed at curbing speculation and stabilizing the real estate market.
Additionally, the government is considering a gradual increase in the rate of withholding tax for purchase and sale of immovable property based on the investment amount.
The government has also taken various measures to regulate the sale and purchase of plots to prevent fraudulent practices and ensure transparency in real estate transactions.
New initiatives include digitization of e-registry and property transfer services as well as introduction of QR code payment mechanism in cattle markets to curb tax evasion. The government also announced new taxes on non-filers in the upcoming budget to encourage tax compliance and curb illegal transactions.
