Real estate tax system revised to boost revenue and compliance
According to news sources, Islamabad has revised the tax structure on property transactions to increase revenue and ensure compliance. According to recent reports, the cumulative property sales tax for non-filer purchasers and sellers has reached an all-time high of 18.5%.
The taxes on the purchase and sale of residential properties, plots, and dwellings have been increased as of 1 July. Property purchases by non-filers are now subject to a 10.5% tax, up from the previous rate of 7%. In contrast, non-filers who sell real estate will be subject to a 6% tax, up from the previous 4%.
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The enhanced tax rates include a one percent stamp duty and a one percent town tax based on the value of the property. According to Imran Migrani, the leader of the Property Dealers Association, filers involved in real estate transactions will now be subject to a 3.3% advance tax, a significant increase from the previous 2.2%, which applies to both purchasers and sellers. After this revision, the federal and provincial governments will receive an 8 percent tax on real estate transactions, in addition to a 1 percent stamp duty and a 1 percent municipal tax.
