In the recently presented budget for the fiscal year 2024-25, the federal government has proposed significant changes to the tax rates on the sale and purchase of property.
According to the budget documents, there will be an increase in the tax on capital gains for property transactions in the next financial year.
Federal Finance Minister Muhammad Aurangzeb, during his budget speech in the National Assembly, announced that filers will now face a 15% tax rate on the purchase and sale of property.
In contrast, non-filers will be taxed at a rate as high as 45% for similar transactions. Additionally, the budget introduces separate tax rates for filers, non-filers, and late filers concerning immovable properties.
The minister emphasized that these changes are aimed at documenting the economy and addressing rumors within the housing sector. He noted that these measures would also help ensure proper accommodation for the public by promoting transparency and accountability in property transactions.
The government’s target for the upcoming fiscal year is to generate Rs 477.11 billion from income tax on properties. This initiative is expected to play a crucial role in achieving this revenue goal while fostering a more structured and documented real estate market.
