In order to increase the cost of doing business for non-filers, the Federal Government of Pakistan on the instructions of the International Monetary Fund(IMF) will increase tax on the sale of property for filers as well as non-filers in the budget that will be announced on Wednesday (today).
Sources told ProPakistani that the government has completed consultations with the IMF on tax reform measures to be announced in today’s budget speech.
Sources said that non-filers will ultimately face higher taxes, as it has been proposed to double the withholding tax on property sales from the current rate of 3 to 4 percent on different investments.
Meanwhile, withholding tax on the purchase of property for non-filers has been proposed to increase to 20 to 25 percent.
Sources said that there will be three categories of investments, one is up to Rs. 50 million, second is Rs. 50 million to Rs. 100 million and the third one is above Rs. 100 million.
Sources added that the government has estimated to collect upto Rs. 70 billion from the property sector in the upcoming fiscal year.
Earlier, the IMF had directed Pakistan to impose progressive rates ranging up to 35 percent for filers and non-filers however reportedly government has revised its working.
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