The federal government has decided to scrap the 3% federal excise duty previously imposed on real estate transactions, according to media reports on Wednesday.
Initially introduced in July, this duty was applicable on the first sale of plots. After 10 months of implementation, officials have opted to revoke it. Senior officials from the Federal Board of Revenue (FBR) confirmed that the move comes following consultations with the International Monetary Fund (IMF).
Previously, the excise duty stood at 3% for tax filers and 5% for non-filers. The FBR has now recommended eliminating both rates and has forwarded a summary to the Finance Ministry. FBR spokesperson Dr. Najeeb Memon stated that the Finance Minister has approved the proposal, and it will soon be presented to the federal cabinet for formal legislation.
Additionally, the government is considering repealing the 10% surcharge currently levied on individuals with annual incomes exceeding Rs 10 million. Efforts are also underway to ease the tax burden on the salaried class, though any changes will require IMF approval.
