KARACHI – More Tax reforms are coming as Senate raised Property investment cap for non-filers in sigh of relief for masses amid tightening of noose.
Senate Standing Committee on Finance and Revenue approved proposal to jack up property purchase limit for non-filers, allowing them to buy property worth up to 500 percent oftheir declared assets in what is said to be major shift from the previous cap, which restricted non-filers to 130% of their asset value.
Lawmakers backed move, arguing that individuals with assets worth Rs10 million should have flexibility to invest in properties valued as high as Rs. 50 million.
Finance Minister Aurangzeb stressed importance of restoring public confidence in Pakistan’s tax system. He lamented number of non-filers, pointing out that penalties for non-filers were increased last year and that further efforts are underway to expand the tax base and ensure compliance.
As other taxes on property transactions remained steady or undergone slight revisions, they still await final Parliamentary approval.
In Budget 2025, the government proposed removing 3percent federal excise duty (FED) on residential and commercial property transfers from July 1, 2025. This duty, introduced in 2024, has faced legal challenges.
Sharif government also plans cutting withholding tax rates on property purchases under Section 236K, while increasing rates for property sellers under Section 236C.
