ISLAMABAD: In the upcoming 2023-24 budget, the government is expected to increase the advance tax on the purchase of immovable properties for non-filers.
As per a report in Business Recorder, discussions on real estate taxation were held during the ongoing meetings between the Federal Board of Revenue (FBR) and the International Monetary Fund (IMF). These talks focused on raising the advance withholding tax for non-filers purchasing immovable property.
Currently, the FBR imposes a three percent tax on filers and a 10.5 percent tax on non-filers, with nearly Rs80 billion collected this fiscal year.
During the meetings, the IMF recommended that the FBR increase the advance tax on non-filers for property purchases. Proposed changes include a three percent tax for filers and a six to seven percent tax for non-filers on properties up to Rs50 million. For properties valued between Rs50 million and Rs100 million, a four percent tax for filers and a 12 percent tax for non-filers have been suggested. For properties worth over Rs100 million, the proposal includes a five percent tax for filers and a 15 percent tax for non-filers.
The report said that the FBR could collect over Rs100 billion if the parliament approves this proposed plan for the next fiscal year.
