Govt sets to provide major relief to real estate sector

To end the years-long recession in the country’s real estate sector, the current government has finalized various proposals to boost the sector which plays a pivotal role in the uplifting of the country’s economy particularly in terms of providing jobs to millions of people.  

As per sources, the proposals include tax cuts, ease of property purchase for non-filers, and incentives for overseas Pakistanis.

Some key proposals are as follows:

·        Non-filers allowed to buy property worth Rs10m

·        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%

·        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

As per media reports, Prime Minister Shehbaz Sharif 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.