The government is considering increasing withholding tax rate progressively on the sale and purchase of immovable property according to investment.
The current rate on sale is 3 percent and 6 percent for ATL and non-ATL, whole on purchase the tax rate is 3 percent and 10.5 percent respectively.
Under the proposal, the ATL list will have three sections comprising timely filers, later filers, and non-filers. The maximum tax rate will be applicable to non-filers, however, late filers will also face an additional tax rate on the sale and purchase of properties.
The overall revenue impact of these measures would be Rs. 40 billion.
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