Big Tax Cuts Coming? Govt Plans Relief for Property Sector
Islamabad: In Pakistan, which is facing severe economic pressure, the government had imposed new taxes worth Rs 1,800 billion in the current fiscal year, including heavy taxes on the construction and property sectors. However, there are now reports that relief is being considered for these sectors in the upcoming budget.
On the instructions of Prime Minister Shehbaz Sharif, a special task force was formed for the construction and real estate sector, which has proposed a detailed package to reduce heavy taxes and increase investment.
This package has been sent to the FBR by the Ministry of Housing, while negotiations are underway with the IMF delegation.
According to sources, in the current fiscal year, a federal excise duty of 3 percent was imposed on filers and 5 percent on non-filers on the sale of property,
Due to which the real estate market stagnated. It has been decided to completely abolish this excise duty, however, the final approval is subject to consultation with the IMF.
According to the FBR, the government collected Rs108 billion in property tax in the first six months of this year, which is 18 percent more than last year, but despite this, the slowdown in the market has raised questions about the government’s policies.
Preparations are underway to provide relief to ordinary citizens in the upcoming budget. According to sources, tax exemptions may be given to those with an annual income of Rs600,000,
While those with an annual income of Rs1.2 million are also likely to get minor relief. However, there is no hope for any concessions for the salaried class with high incomes.
Meanwhile, the government is also considering imposing taxes on large pensioners, increasing duties on petrol-powered vehicles and imposing a carbon levy of Rs5 per liter of petrol.
On the other hand, a proposal has been made to relax taxes for electric vehicles to encourage environmentally friendly technology.
Final decisions will be subject to IMF approval before the next budget is presented Uflii, ftz of The public and investors are now focused on only one question: Will the budget really bring relief or a new burden?
