The federal government has prepared various proposals to provide relief to the property and construction sector, with a focus on reducing taxes and facilitating transactions.
According to official documents obtained by Samaa TV, the proposals include tax cuts, ease of property purchase for non-filers, and incentives for overseas Pakistanis.
Non-filers allowed to buy property worth Rs10m
According to official documents, one of the major proposals suggests allowing non-filers to purchase property worth up to Rs10 million. Currently, strict regulations restrict non-filers from making high-value property transactions.
Tax reductions
The government is considering a significant reduction in tax rates to encourage buying and selling within the sector. Key proposals include:
- Reducing tax under Section 236C (sale of property)
- Lowering property transaction tax from the current 4% to between 1.5% and 2%
- Reducing the tax on property purchases from 3% to just 0.5%
Currently, property transactions are subject to an overall tax rate of 11% to 14%, which stakeholders argue is discouraging investment.
Increase in certain property taxes
While the government aims to lower taxes in some areas, it has also proposed a slight increase in property sale and purchase taxes from 4% to 4.5%. The rationale behind this is to balance revenue generation while providing relief in other areas.
Facilitation for overseas Pakistanis
In a bid to attract foreign investment, the government is working on measures to make property purchases easier for overseas Pakistanis. The proposals include:
- Allowing overseas Pakistanis to register online with NADRA for property transactions
- Providing filers the facility to declare property worth Rs50 million in their wealth statements
The prime minister had formed a task force to revive the struggling construction sector, with the Ministry of Housing and Works submitting these recommendations to the Federal Board of Revenue (FBR). The move is expected to boost economic activity, create jobs, and attract investment.
