Budget 2024-25: Non-Filers to face additional withholding tax on Property transactions
Pakistan is seeking new loans from the IMF while the lender is pushing to touch unused sections to widen the tax base.
ISLAMABAD: The FBR is likely to receive more than Rs100 billion in the next fiscal year after being approved by legislation.
It is aimed at discouraging non-compliance and increasing tax revenues from the real estate sector.
As per the reports, the government of Pakistan government is tightening the noose around non-filers to increase revenue and now the government is likely to increase advance tax on the purchase of immovable properties by non-filers.
According to the new understanding between International Monetary Fund (IMF) and the Federal Board of Revenue (FBR), the withholding tax will be increased on the purchase of property by non-filers.
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Pakistan is seeking new loans from the IMF while the lender is pushing to touch unused sections to widen the tax base.
The government promised to implement further structural reforms, including blocking mobile SIM cards of non-filers.
So far, tax authorities have imposed 3% tax on filers and 10.5% on non-filers, which will generate revenue of Rs80 billion in the current financial year. The IMF is now recommending to the government to raise the advance tax rate for non-filers.
