Ministry of Housing Sends Relief Proposals for Construction Sector to FBR
In light of the country’s economic conditions, the government had imposed heavy taxes on the property and construction sectors to boost tax revenues. However, to reduce the heavy taxes and encourage investment and development in the construction sector, Prime Minister Shehbaz Sharif formed a task force.
The task force has prepared a proposed relief package for the construction sector, and the Ministry of Housing has now sent these relief proposals to the Federal Board of Revenue (FBR).
The task force has recommended providing tax relief for buyers in the housing sector, including allowing non-filers to purchase property worth up to one crore rupees, and increasing the tax rate on property sales to 50%.
Currently, the total tax on property transactions ranges from 11% to 14%, but the task force has suggested reducing it to 4% to 4.5%.
The task force also recommended simplifying the property purchase process for overseas Pakistanis by providing them with the option to register online with NADRA. Furthermore, it has been proposed that filers should be allowed to include properties worth up to 5 crore rupees in their wealth statements.
The new tax laws had previously imposed restrictions on filers, stating that individuals declaring assets worth one crore rupees would be prohibited from purchasing property worth more than one crore 30 lakh rupees.
