Low Tax Collection on Real Estate Gains: FBR Sources

According to FBR sources, taxes are being collected at a lower rate on millions of rupees in gains from the sale and acquisition of real estate.

Islamabad: A 25 percent hike in the capital gains tax rate on real estate sales is anticipated from the federal government.

Sources claim that plans to raise the capital gains tax in the upcoming fiscal year’s new budget have begun, with the possibility of raising the rate from 15% to 40%. According to sources, capital gains tax may be assessed at the same rate as corporate income tax.

According to further sources, taxes are being collected at a lower rate on millions of rupees in gains from the buying and selling of real estate. It is necessary to raise the CGT on real estate purchases and sales. Another concern is that if the capital gains tax is raised, fewer transactions would occur.

According to FBR sources, virtual negotiations on revenue and spending are taking place with the IMF mission. In addition to the current virtual discussions between the Ministry of Finance and the FBR with the IMF, the budget will have a tax-to-GDP ratio of 11% and a spending-to-GDP ratio of 20.3%.