Abbottabad property often writes about Excise duty on property transferThe federal government is expected to remove the federal excise duty (FED) on the transfer of plots and commercial properties under the Finance Act 2024, following lower-than-expected revenue collection in the first half of the fiscal year.

This was a speculation that, Government may remove excise duty on property transactions but this is true that, the Federal Board of Revenue (FBR) is likely to propose abolishing the FED on allotments and transfers of both commercial and residential properties, with implementation expected in the 2025-26 budget.

Read : FBR Caught Sleeping As Telco Silently Issues Reduced Tax Certificates

This is the best Tax relief on property transactions, developers and builders must collect FED at rates between 3% and 7%, depending on the buyer’s tax status. However, the lack of a proper monitoring system has limited the effectiveness of this tax.

As it stands:

• Developers or builders must collect FED at 3% of the transaction value if the buyer is on the active taxpayers’ list.
• The rate increases to 5% if the buyer has not filed an income tax return.
• Buyers not appearing on the active taxpayers’ list face a 7% FED.

Read: Punjab Expands Property Tax to Housing Societies Outside Urban Areas

Finally Excise duty on property transfer to be waive off, the government is considering reducing transaction taxes on real estate sales. The Taskforce on Housing Sector Development has recommended eliminating the capital value tax (CVT) in Islamabad, standardizing stamp duties across provinces, and offering tax exemptions for real estate investments up to Rs. 50 million.

Read Source of the Article:  Pro Pakistani