The federal government has abolished the Federal Excise Duty (FED) on the purchase or transfer of property, effective July 1, 2024. The FED, which was previously set at 3-7 percent, has now been reduced to zero.
“Federal excise duty on the allotment and transfer of residential and commercial plots, imposed through the Finance Act, 2024, is now proposed to be withdrawn,” according to FBR.
This means that buyers will no longer have to pay any FED when purchasing property.
Meanwhile, other taxes on property transactions have either been maintained or slightly adjusted. On the sale of property under Section 236C, the tax rate for active filers has been reduced from 3 percent to 1.5 percent. However, for late filers and non-filers, the rates remain unchanged at 6 percent and 12 percent, respectively.
On the purchase side, the tax rate for active filers remains at 3 percent. Late filers will continue to pay a 6 percent tax, and non-filers will still face a 12 percent rate.
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