Govt weighs tax relief package for real estate sector

Federal government was planning to announce tax relief package for country’s real estate sector as Prime Minister's Task Force has finalized the package for the real estate sector which will be finalized after due consultations with IMF, reported 24NewsHDTV channel. 

The government is planning to abolish property purchase tax for overseas Pakistanis. The Federal Bureau of Revenue (FBR) will slash federal excise duty tax besides remarkable decrease in taxes for filers and non filers. 

The government is working on proposal to reduce tax levied on property purchase from 4 percent to 0.5 percent. The FBR is being recommended to impose 1 percent tax on property sales below Rs 5 crore. 3 percent tax is currently levied on property sales below Rs 5 crore. 

There is suggestion to impose 1.5 percent tax on sale of property worth Rs 5 to 10 crore as currently 3.5 percent tax was being levied on sale of property worth Rs 5 to 10 crore. There is suggestion to impose 2 percent  tax on sale of property above Rs 10 crore instead of currently 4 percent tax. 

According to sources, FBR was considering to abolish late filers category. Prime Minister's Task Force has finalized the package for the real estate sector which will be finalized after due consultation with IMF.

The Prime Minister's Construction Package is expected to be announced in February. 

Reporter: Waqas Azeem