In this budget for 2022-2023, the federal government has levied 440 billion in new taxes on the real estate sector. According to FBR Chairman Asim Ahmad, the Federal Board of Revenue submitted a proposal to the federal government for 440 billion in new taxes, which was approved and included in the budget.
New Taxation on Real Estate Sector in Budget 2022-2023
440 Billion rupees has been levied on real estate sector in the federal budget 2022-2023. This taxation includes 34B on customs duty and 90B on sales tax, federal tax and 316B income tax include in the budget 2022-2023.
Deem Tax
If you keep your property more than one year you have to pay 15% GST. There is also advice of property tax on property of more than 2.5M For Example, you own a plot worth 5 crore. The Government will assume the income on this plot at 5% which is 25 lacs. The applicable tax will be 20% of the assumed amount, i.e. 5 lac. In other words, you will pay 1% tax of total FBR value of your property worth above 2.5 crore.
Capital gain Tax
The time limit for capital gains tax has been extended to six years. Previously, if you sold your home within four years, CGT would apply, and the tax rate would fall each year. The new amendment will have a six-year effective period and a maximum tax rate of 15%.
This means that if the property is sold within one year, the tax is 15%, 12.5 percent in two years, 10% in three years, 7.5 percent in four years, 5% in five years, 2.5 percent in six years, and 0% in the seventh year. 40 billion in revenue will be created by doing so.
People reaction on new tax
The current prevailing situation in economic sector is worse. Pakistan needs stability and bold decision as pointed out by the IMF. Pakistan is taking bold steps and these decisions are reflected in the budget. There are also reliefs given in the budget for poor people.
