The federal government has outlined a series of proposals aimed at offering relief to the property and construction sectors by focusing on reducing taxes and simplifying transactions.
Official documents, obtained by Samaa TV, reveal that the proposals include tax cuts, enabling non-filers to purchase property, and incentives for overseas Pakistanis.
Non-filers allowed to purchase property worth Rs10m
One of the key proposals is to allow non-filers to buy property valued up to Rs10 million, easing current restrictions on high-value property transactions for non-filers.
Tax reductions
The government is considering substantial tax cuts to encourage activity within the sector. Proposals include:
- Lowering tax under Section 236C (property sales)
- Reducing the property transaction tax from 4% to between 1.5% and 2%
- Cutting the tax on property purchases from 3% to just 0.5%
Currently, property transactions are taxed at a rate of 11% to 14%, which stakeholders say has deterred investment.
Increase in certain property taxes
While the government aims to reduce taxes in some areas, it also proposes a slight increase in property sale and purchase taxes from 4% to 4.5%, seeking to strike a balance between revenue generation and providing relief in other sectors.
Facilitation for overseas Pakistanis
To encourage foreign investment, the government is working on measures to simplify property transactions for overseas Pakistanis. These include:
- Enabling overseas Pakistanis to register online with NADRA for property dealings
- Allowing filers to declare property worth up to Rs50 million in their wealth statements
The prime minister established a task force to revitalize the construction sector, with the Ministry of Housing and Works submitting these proposals to the Federal Board of Revenue (FBR). The move is expected to stimulate economic activity, generate jobs, and attract investment.
