Budget 2024-25: Non-Filers to face additional withholding tax on Property transactions

ISLAMABAD: The Federal Board of Revenue (FBR) is likely to receive more than Rs100 billion in the next fiscal year after being approved by legislation.

It is aimed at discouraging non-compliance and increasing tax revenues from the real estate sector.

As per the reports, the government of Pakistan government is tightening the noose around non-filers to increase revenue and now the government is likely to increase advance tax on the purchase of immovable properties by non-filers.

According to the new understanding between International Monetary Fund (IMF) and the FBR, the withholding tax will be increased on the purchase of property by non-filers.

Pakistan is seeking new loans from the IMF while the lender is pushing to touch unused sections to widen the tax base.

Read More: FBR, telecom operators fail to reach consensus over SIM blocking of non-filers

The government promised to implement further structural reforms, including blocking mobile SIM cards of non-filers.

So far, tax authorities have imposed 3% tax on filers and 10.5% on non-filers, which will generate revenue of Rs80 billion in the current financial year. The IMF is now recommending to the government to raise the advance tax rate for non-filers.