To increase the cost of doing business for non-filers, the federal government will raise tax on sales of real estate for both filers and non-filers in the budget from the International Monetary Fund (IMF). will be announced (today) on Wednesday.

Sources told ProStartUpPakistan that the government has completed consultations with the IMF on tax reform measures that will be announced in today's budget speech.


Non-filers will eventually face higher taxes as withholding tax on sale of property on various investments is proposed to be doubled from the current rate of 3 to 4 per cent, sources said.


Meanwhile, withholding tax on property purchase for non-filers has been proposed to be increased from 20 to 25 percent.


Sources said that there will be three types of investment, one up to Rs. 50 million, another Rs. 50 million to Rs.100 million and the third is above Rs. 100 million.


Sources further said that the government's estimate is up to billions of rupees. 70 billion rupees from the real estate sector in the next financial year


The IMF had earlier directed Pakistan to impose progressive rates of up to 35 percent on filers and non-filers, but the government has reportedly revised its approach.


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