ISLAMABAD – Real estate sector remains in dire straits as authorities tighten noose in last budget, imposing excise duty.
The federal government announced decision to abolish excise duty imposed on real estate sector. The duty, which was introduced in July 2023, charged 3percent on the first sale of any plot, with a higher rate for non-tax filers.
Under latest measures, the coalition government decided to eliminate tax in consultation with the International Monetary Fund (IMF), sources from FBR said.
The country’s apex tax collection authority already submitted summary regarding the matter, which has been approved by the finance minister. Legislation to officially remove the excise duty is expected to be introduced shortly, with the proposal set to be presented to the federal cabinet for final approval.
Sharif led government is also considering removal of 10percent surcharge on annual incomes exceeding Rs10 million amid new measures to reduce tax burden on salaried individuals, though any changes will depend on the approval of IMF.
The removal of this excise duty is expected to bring relief to the real estate sector, which has faced challenges since the tax’s introduction, and may provide additional economic stimulus as the government works to reduce financial burdens on citizens.
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