Budget 2024-25: Real estate sector submits recommendations

Pakistan’s real estate experts have forwarded their budget 2024-25 recommendations to Finance Minister Muhammad Aurangzeb, ARY News reported on Monday.

According to the real estate expert, Ahsan Malik, the sector has suffered huge losses for the past two years. He warned that imposing higher taxes on real estate will drive more investment out of Pakistan.

Malik suggested the Pakistan government to reduce DC rates by 33% to reflect the actual market value of the property in the budget 2024-25.

He calls for the elimination of the 3% income tax under Section 236C on land sales.

Malik proposed that the income tax on the sale of land and flats under Section 236C should be reduced to 1% in the upcoming fiscal year budget.

The real estate expert further recommended reducing the tax for non-filers under Section 236-C from 10.5% to 6%.

Special tax concessions should be granted to widows who are non-filers when purchasing property.

According to Ahsan Malik, these recommendations aim to revitalize the struggling real estate sector and prevent capital flight from Pakistan.

Pakistan reportedly failed to convince the International Monetary Fund (IMF) on the steps to bring real estate sector into the tax net.

The fifth round of talks was held between Pakistan and IMF as the South Asian nation is seeking a fresh bailout package to address the balance of payments issue.

Sources privy to the development said, the IMF mission showed its consent on Pakistan’s proposal of increasing tax on the sale and purchase of plots for the non-filers.