According to FBR sources, the Federal Board of Revenue (FBR) has promised the International Monetary Fund (IMF) that it will include the real estate industry in the tax net.

According to sources, taxes on the purchase and sale of plot files by non-filers would likely rise significantly. To guarantee appropriate paperwork, there is also a suggestion to switch from using other channels for transactions within the real estate industry to banking channels.

Read More: CDA Expands Property Tax to All Areas of Islamabad

All housing society data, including those pertaining to plot cutting and land purchases, would be registered, according to the sources. Housing society registration will become mandatory, and the FBR will periodically update its database with information on plot sales and real estate agents.

The IMF will get a coordination report on the province-by-province taxation of the real estate industry. According to sources, the next federal budget (2024–25) would include measures to end unrecorded real estate transactions and levy taxes when necessary.

There will be a further hike in tax rates for non-filers who purchase and sell plots, according to sources. Plot sellers are currently subject to a regular 4 percent gain tax and 7 percent withholding tax.

Read More: CDA Chairman Suspends 18 Employees for Billions of Corruption Scandal

According to sources, these actions were essential for strengthening the tax system and providing more comprehensive economic documentation. Notably, a significant portion of tax evasion is caused by the absence of an effective regulatory framework to oversee the buying and selling of housing society files. 

For more news, visit the Al Sadat Marketing Website.