ISLAMABAD – The government has approved a reduction in advance tax rates on property buying and selling, introducing new rates effective from July 1. Following the passage of the Finance Bill, the new tax structure will apply nationwide from the start of the new fiscal year.
According to reports, the revised law sets a 2.75% advance tax on the total value for sellers of immovable property. Meanwhile, buyers will be required to pay 1.25% advance tax on the fair market value of the property, potentially increasing overall transaction costs in the real estate sector.
The approved Finance Bill also introduces higher tax burdens on the corporate and banking sectors.
From July 1, banking companies and the fertilizer sector will be taxed at 10% on income exceeding Rs150 million, while other corporate companies will face an 8% tax on income above Rs500 million.
