Govt Plans Tax Relief for Overseas Pakistanis in Property Sector

The federal government is preparing to provide major relief to the real estate and construction sector in the upcoming budget. The government has decided to abolish the federal excise duty (FED) on property transactions for overseas Pakistanis. Additionally, the requirement of obtaining a no-objection certificate (NOC) for tax exemption on property purchases by overseas Pakistanis is also likely to be removed. Another proposal to abolish the FED on all real estate transactions is also under consideration, and the Federal Board of Revenue (FBR) is expected to issue a notification in this regard, effective from July 1. Changes to FED rates for late filers and non-filers are also under review. Eliminating the FED will help stimulate construction activity and increase tax collection through enhanced sectoral growth. The upcoming budget also includes a proposal to revise withholding tax rates on property transactions. It is being proposed that all builders and developers involved in real estate be formally registered from July 1.