FBR has submitted its proposals for the upcoming fiscal year’s federal budget, as reported by national media on Thursday.
In the current fiscal year’s budget, FBR had imposed a 3% Federal Excise Duty on property sales for tax filers and 5% for non-filers. According to sources, FBR has decided to eliminate this tax.
The Prime Minister’s Task Force has also held discussions with the IMF delegation in this regard. Under this tax, from June 30, 2024, any sold house, plot, property, or apartment was subject to Federal Excise Duty, which had a significant impact on the real estate market.
According to a report by Samaa News citing sources, the government has collected Rs108 billion in taxes from property and real estate transactions during the first six months of the current fiscal year, which is 18% more than the previous year.
The report also revealed that in the upcoming budget, there is a proposal under consideration to grant tax exemption to individuals with an annual income of Rs600,000. In this year’s budget, this income group was taxed for the first time. These proposals will be subject to IMF approval.
The upcoming budget may only provide relief to those earning Rs600,000 annually, although a minor tax relief might be given to those earning Rs1.2 million annually. However, no relief is currently under consideration for higher-income groups.
The budget may also propose taxing those receiving higher monthly pensions. Additionally, the already high taxes and duties on petrol-powered vehicles may be increased further. However, there is a proposal to reduce taxes further on electric vehicles. There is also a proposal under consideration to impose a Rs5 per liter carbon levy on petrol.
