In a bid to revive Pakistan’s real estate and construction sectors, the government has announced that non-filers will now be allowed to purchase properties worth up to Rs 10 million.
This decision comes as part of the final recommendations made by the task force on the revival of the real estate and construction sector.
The Ministry of Housing has submitted these proposals to the Federal Board of Revenue (FBR), with the aim of creating more employment opportunities through the sector’s recovery.
According to the recommendations, non-filers will be able to buy properties after the introduction of tax cuts under Section 236-C for property sales.
The proposal includes reducing the capital gains tax on property sales from 3 percent to 1.5 percent and from 4 percent to 2 percent. Additionally, the tax on property purchases could be lowered from 3 percent to just 0.5 percent.
At present, the total tax burden on property transactions in Pakistan ranges between 11 percent and 14 percent. The new proposals aim to bring this down to around 4 percent to 4.5 percent, making property investments more attractive for both local and overseas buyers.
For overseas Pakistanis, the government is making it easier to invest in properties by providing an online registration facility through NADRA.
Furthermore, filers will be allowed to declare property worth up to Rs 50 million in their wealth statement.
These changes are expected to give a significant boost to the real estate market, encouraging both local and foreign investment in the sector.
