Pakistan

Budget 2024-25: Govt to increase taxes on property for filers and non-filers

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Staff Reporter

2 years ago

Govt approves reduced property tax rates, new income tax slabs for salaried class

ISLAMABAD: To raise the cost of doing business for non-filers, the Federal Government of Pakistan, on the orders of the International Monetary Fund (IMF), would increase tax on the sale of property for both filers and non-filers in the budget that will be announced on Wednesday(today).

According to sources, the administration has finalized negotiations with the IMF on tax reform proposals that will be unveiled in today’s budget statement.

According to sources, non-filers may eventually face higher taxes, as it is intended to raise the withholding tax on property transactions from the existing rate of 3 to 4 percent on various investments.

Meanwhile, the planned rise in withholding tax on property purchases for non-filers is 20 to 25 percent.

According to sources, investments will be divided into three categories: up to Rs. 50 million, Rs. 50 million to Rs. 100 million, and more than Rs. 100 million.

Sources stated that the government expects to collect up to Rs. 70 billion from the property industry in the coming fiscal year.

Earlier, the IMF had directed Pakistan to impose progressive rates ranging up to 35 percent for filers and non-filers however reportedly government has revised its working.

Staff Reporter