Pakistan Government is going to do end FED?
FBR is proposing to abolish FED on commercial and residential property transfers, which could be implemented in the new budget.
In Pakistan, FED is first imposed on allotment or transfer of commercial and residential property, so that property transactions can be regulated.
At present, FBR collects 3 percent FED from developer or builder buyers who are filers or active taxpayers, 5 percent from those who do not file tax returns and 7% FED from non-filers or non-active taxpayers.
Apart from this, the Task Force has said to reduce taxes on stamp duty i.e. documents prepared for property transactions and to implement a similar scheme in every province and Rs. It has been said to waive wealth reconciliation on real estate investments up to Rs. 50 million. This means that people can invest money in property and construction sector up to this limit without declaring the source of income.
Apart from this, it has been said to reduce all taxes levied on property transactions and abolish Islamabad's CVT under the Income Tax Ordinance.
If these measures are implemented, then real estate and construction sector will flourish, acquiring property will become easier, investments will increase, and the economy will benefit
