ISLAMABAD – The federal government has proposed imposition of five percent federal excise duty (FED) on new plots, residential and commercial properties.
Finance Minister Muhammad Aurangzeb presented the proposal while unveiling the federal budget for fiscal year 2024-25 on Wednesday.
He stated that the imposition of the Fed would curb speculation, adding that it would also stabilize the real estate market.
Additionally, the government is mulling a gradual increase in the withholding tax rate for the sale and purchase of immovable property based on the investment amount.
Meanwhile, the FBR’s tax collection for the next fiscal year would be around Rs12,970 billion which is 38 percent more than the outgoing year.
