FBR to Withdraw Excise Duty on Property Purchase for Everyone

The Federal Board of Revenue (FBR) has submitted a summary to the federal cabinet recommending the complete abolition of Federal Excise Duty (FED) on property purchases, following a green signal from Prime Minister Shehbaz Sharif. During an informal conversation with media representatives, FBR Chairman Rashid Mahmood Langrial confirmed that the summary proposing the end of FED on property transactions has been forwarded to the cabinet. Once approved, the decision will be implemented immediately. The chairman clarified that there will be no cap or upper limit on the value of property for which this exemption applies. The abolition will benefit all taxpayer categories equally, including filers, late filers, and non-filers. Specifically, the 3 percent FED currently imposed on filers purchasing property will be scrapped. Likewise, the 5 percent FED applicable to late filers and the 7 percent FED imposed on non-filers will also be eliminated. This move comes as part of the government’s broader efforts to stimulate the real estate sector and remove tax-related hurdles for property buyers across the board. Langrial added that implementation of the decision is contingent upon cabinet approval, which is expected shortly.