In a first, FED imposed on sale of properties

ISLAMABAD: The federal government has imposed a three per cent federal excise duty (FED) on the sale of properties with builders and developers to pay on every new project, ARY News reported on Friday.

According to the Finance Bill 2024-25 passed by National Assembly (NA) today, the 3pc FED will be applicable on all sales of commercial and residential properties, including apartments and houses.

The federal excise duty will also apply to builders and developers, launching new projects. As per the amended bill, a filer will pay 3pc FED, late-filler will pay 5pc and non-filer will pay 7pc on the sale of real estate.

The government also introduced a capital value tax (CVT) on the sale of properties in Islamabad. The CVT, worth Rs0.5 million, has been imposed on farmhouses and large houses under Section 7-E.

The CVT will be Rs0.5m for properties worth up to 2000 square yards, and Rs1m for properties above 4000 square yards.

Earlier in the day, the National Assembly (NA) approved the Federal Budget for the fiscal year 2024-25 with a total outlay of Rs18,870 billion.

Minister for Finance and Revenue Muhammad Aurangzeb moved the motion for consideration of the Finance Bill, 2024 to give effect to the financial proposals of the federal government for the year, commencing on July 1, 2024.

The motion was passed with majority vote which led to the passage of Finance Bill-2024 after clause-by-clause reading and adopting amendments after due process of voting. All the amendments, presented by the opposition members, were rejected.