Real estate is a cost-effective sector of Pakistan. So, when the budget of 2022-23 was introduced, the following tax measures were introduced such as:
- Capital Gain Tax (CGT) increased to 15%
- FBR increased advance tax to 2% for filers and 5% for non-filers.
- Individuals who have multiple properties (value over Rs250 million) and derive rental income equal to 5% of the fair market value of the capital assets will pay 20% tax on their rental income along with 1% tax on overall rental income.
After that, the growth of the real estate sector is damaged by the month of July 2022 to now as investments and employment are in danger. The national and international investors and buyers have removed back their more than 50% investment.
Now, the government has decided to give tax relief of Rs 15 billion by withdrawing 20% of deemed income tax.
Furthermore, the national government has ordered plan a tax relief for the bankers, traders, stock market, and transporters that will surpass 75 billion in addition to the real estate sector. The fixed tax on traders will be reduced from Rs 42 billion to Rs 27 billion. However, this difference of Rs 15 billion will be bridged by taxing other sectors.
Along with that, the officials have planned to lessen the tax on businesses and rich people which will put a burden on salaried persons and will increase inflation by 25%.