Pakistan intends to “get more tax from the real estate sector” in the 2024–2025 budget.

Presenting its first growth-oriented budget for the fiscal year 2024–25, the federal government led by the Pakistan Muslim League-Nawaz (PML-N) is expected to spend more than Rs18 trillion.

Pakistan is to receive taxes from the real estate sector in three different slabs, as per the plans.

Sources stated that a taxpayer purchasing real estate for Rs. 50 million will be required to pay 3 percent tax, while a non-taxpaying buyer will be have to pay 6 percent tax.

Property valued between Rs. 50 and Rs. 100 million will be subject to a 4 percent tax for filers and a 12 percent levy for non-filers.

The third slab levies a 5 percent tax penalty on non-filers who purchase or sell property valued at more than Rs 100 million, with the non-filer being required to pay a 15 percent tax.

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The advice of real estate
The suggestions for the 2024–25 budget have been sent to Finance Minister Muhammad Aurangzeb by Pakistan’s real estate specialists.

The real estate industry has seen significant losses over the last two years, according to Ahsan Malik. Raising real estate taxes, he cautioned, will make investors withdraw their money from Pakistan.

In order to reflect the property’s true market value in the budget for 2024–2025, Malik recommended that the Pakistani government lower DC rates by 33%.

The 3% income tax on land sales under Section 236C should be abolished, according to him.

Malik suggested that the upcoming fiscal year budget lower the income tax to 1% on the sale of land and apartments under Section 236C.

The tax for non-filers under Section 236-C should be lowered from 10.5% to 6%, according to the real estate specialist.

Widows who purchase property but are not filers should be eligible for special tax discounts.