These moves are to boost the real estate sector and bring about domestic and overseas investment.
Non-filers Can Now Buy Properties Worth Up to Rs10 Million. The Ministry of Housing has put forward these proposals before the Federal Board of Revenue (FBR) with the hope that they will create jobs through the revival of the sector.
For this to happen, the ministry has proposed a reduction in tax rates under Section 236-C for property sales, which will allow non-filers to acquire properties.
In simple words, the capital gains tax under Section 236-C will be cut down from 3% to 1.5%, and from 4% to 2%, while under Section 236 the tax on the purchase of property is expected to be reduced from 3% to 0.5%.
With this, the tax burden in total on property transactions, which lies between 11%-14% at the moment, is expected to come down to an approximate rate of around 4%-4.5%.
Overseas Pakistanis also get to benefit concerning property investments, with the National Database and Registration Authority (NADRA) providing online registration facilities for overseas buyers. Filers shall be allowed to declare property worth up to Rs50 million under their wealth statement, whereas Non-filers will be able to buy properties worth Rs10 million.
These moves are to boost the real estate sector and bring about domestic and overseas investment. In a related development, the Punjab government has decided to set up a Special Planning Authority that will regulate the use of urban and rural land, reportedly aimed at putting a stop to the rise of illegal housing societies across the province.
A high-powered meeting chaired by Chief Minister Punjab Maryam Nawaz assessed proposals for changes concerning uniform zoning and land-use regulations for commercial and residential purposes.
