Federal Government Decides to Abolish Federal Excise Duty on Real Estate Sector

The **federal government** has decided to **abolish** the **Federal Excise Duty (FED)** on the **real estate sector**, which was introduced in **July 2023**. This duty, which was **3%** on the first sale of any plot, will now be completely **removed** after 10 months.

Senior officials from the **Federal Board of Revenue (FBR)** have confirmed this decision, stating that it was taken in **consultation with the International Monetary Fund (IMF)**. Initially, a **3% FED** was imposed on **filers** and a **5% FED** on **non-filers** for the first sale of property. However, the government has now decided to eliminate this duty for both categories entirely. The **FBR** has already submitted a **summary** for approval in this regard.

**FBR** spokesperson, **Dr. Najeeb Meman**, confirmed that **legislation** will soon be introduced to formally abolish the FED. The **Finance Minister** has already **approved** the summary, and it will soon be presented to the **Federal Cabinet** for final approval.

Additionally, the government is also considering **eliminating** the **10% surcharge** on **annual income exceeding 10 million rupees** for the upcoming **financial year**.

Sources suggest that the government is exploring various options to **reduce the tax burden** on salaried individuals, but these steps will be subject to **IMF’s approval**.

This move is being seen as a step toward **boosting the real estate market** and easing the financial burden on property investors and individuals.