Breaking News Non-Filers Have To Pay Now Additional Withholding Tax on Property Transactions

May 21, 2024Zayn0

The forthcoming budget would impose additional withholding tax on property transfers for non-filers. The International Monetary Fund (IMF) and the Federal Board of Revenue (FBR) have reached a new understanding that will result in non-filers paying a higher withholding tax on property acquisitions. To increase revenue, the Pakistani government is tightening the screws on non-filers and may soon increase the advance tax on purchases of real estate made by non-filers. Here are all the details of it.

Pakistan’s Planned Property Tax

With the legislature’s permission, FBR may be able to collect more than Rs 100 billion in the upcoming fiscal year. The intention is to increase tax collection from the real estate industry and deter noncompliance.

IMF Urges To Approach New Loans

To increase the size of its revenue base, the IMF is urging Pakistan to approach unexplored markets for new loans. The administration also promised to carry out structural changes, such as preventing non-fillers’ mobile SIM cards from being used.

Targeting non-Filers

To date, the tax authorities have collected Rs80 billion in income for this fiscal year by levying a 3 percent levy on filers and a 10.5 percent tax on non-filers. The government should raise the advance tax rate on non-filers, as advised by the IMF.

Improving Implementation Of Taxes

This action is a component of the government’s larger initiatives to improve tax compliance and punish those who have been dodging their tax liabilities. By going after non-filers in the real estate industry, the government hopes to make a powerful statement and get people to start paying their fair share of taxes.

There will undoubtedly be a great deal of discussion and disagreement about this revelation among the public and business community. The government is working to change the tax landscape in the nation therefore, the implementation and effects of this new policy will be widely watched in the upcoming months.

In Summary

The increased withholding tax on real estate transactions for non-filers included in the 2019 budget is a major policy change intended to boost tax compliance and revenue. The government’s resolve to address the non-filer issue is indicative of its dedication to creating a more just and long-lasting tax system in Pakistan.

Zayn

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