Budget 2024–2025: The real estate industry makes suggestions

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.

These suggestions, in accordance with Ahsan Malik, are meant to stop capital flight from Pakistan and revive the beleaguered real estate industry.

The International Monetary Fund (IMF) was apparently not persuaded by Pakistan to adopt measures to include the real estate sector in the tax system.

Pakistan is seeking a new bailout package to handle its balance of payments crisis, and as a result, the two countries convened their fifth round of negotiations.

Plot buyers and sellers in Pakistan wanted to pay more taxes on plot sales, and the IMF mission agreed, according to people with knowledge of the issue.