Non-Filers
ISLAMABAD: The Pakistani government is set to provide relief to non-filers by allowing them to purchase properties worth up to Rs10 million, as part of a broader strategy to revive the real estate and construction sectors.
A task force established for this purpose has finalized its recommendations, which have been submitted by the Ministry of Housing to the Federal Board of Revenue (FBR). This initiative aligns with the Prime Minister’s vision to boost employment opportunities by stimulating growth in the real estate industry.
According to sources, the recommendations propose significant tax reductions under various sections of the tax code to make property transactions more accessible to both filers and non-filers.
One of the key suggestions is a reduction in capital gains tax under Section 236-C, bringing it down from 3% to 1.5% for filers and from 4% to 2% for non-filers. Additionally, the tax on property purchases under Section 236, currently at 3%, is expected to be lowered to just 0.5%.
Currently, property transactions in Pakistan bear a tax burden ranging between 11% and 14%. The task force has recommended bringing this overall tax rate down to 4% – 4.5%, making real estate transactions more affordable and encouraging investment in the sector.
Another major reform includes facilitating overseas Pakistanis in property investments by simplifying registration procedures. The National Database and Registration Authority (NADRA) will provide an online registration platform to streamline the process for expatriates looking to invest in Pakistan’s real estate market.
Furthermore, the recommendations suggest that while filers will be permitted to declare property assets worth up to Rs50 million in their wealth statements, non-filers will now be allowed to legally purchase properties up to Rs10 million. This move is expected to bring undocumented money into the formal economy while revitalizing the property market.
In a related development, the Punjab government has taken steps to regulate land use and curb the rise of illegal housing societies. Chief Minister Maryam Nawaz recently chaired a high-level meeting where a proposal was reviewed to establish a Special Planning Authority.
The authority will introduce uniform zoning and land-use regulations for both urban and rural areas to ensure controlled and sustainable real estate development.
These measures collectively aim to boost the real estate sector, create employment opportunities, attract local and foreign investment, and bring unregulated property dealings under official oversight.
