ISLAMABAD – Pakistan’s new government is set to implement additional taxes on non-filers involved in the sale and purchase of plots, following directives from the International Monetary Fund (IMF). This move comes as part of ongoing discussions to secure the final tranche of bailout funds. The Federal Board of Revenue (FBR) has decided to introduce these new taxes in order to integrate the real estate sector into the tax system.
The real estate sector has experienced significant growth and attracted investors, but it has also been a hotspot for tax evasion, particularly by influential individuals leveraging undisclosed transactions. To address this issue, the government plans to impose taxes on non-filers involved in plot transactions and intends to register housing societies to enhance transparency.
To curb undocumented transactions, the government aims to encourage the use of banking channels for property transactions and ensure that all plot dealings within housing societies are properly recorded. The proposed measures include a seven percent withholding tax for non-filers and a four percent capital gains tax on plot transactions.
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These steps are part of broader efforts to reform the tax system and increase revenue collection. The FBR has shared its tax revenue plan with the IMF delegation during ongoing discussions, with the aim of achieving a tax collection target of Rs 9,415 billion.